Diesel Prices See Biggest Drop in the Midwest

Diesel Prices Fall for Fifth Straight Week, Offering Relief to Trucking Industry

The diesel prices fell during the week ending May 25, continuing a downward trend that could help reduce fuel costs for trucking companies and owner-operators heading into the busy summer freight season.

According to the latest data released by the U.S. Energy Information Administration (EIA) on May 27, the average on-highway diesel price fell by 7.3 cents per gallon to $5.523 per gallon nationwide. The decline follows a 4.3-cent drop the previous week and marks the fifth consecutive weekly decrease.

While diesel remains significantly higher than a year ago, the latest decline provides some relief for carriers facing elevated operating expenses.

National Diesel Price Drops More Than Seven Cents

The U.S. average diesel price decreased from $5.596 per gallon on May 18 to $5.523 per gallon on May 25.

Even after the recent decline, diesel prices remain:

• $2.04 higher than the same week in 2025
• $1.77 higher than two years ago

Fuel costs remain one of the largest expenses for trucking operations. As a result, many carriers continue to monitor diesel price movements closely as freight demand and spot market rates remain elevated in many parts of the country.

Midwest Records Largest Weekly Decline

The sharpest regional decrease occurred in the Midwest, where diesel prices dropped 12.6 cents per gallon during the week.

Average diesel prices by region were:

• West Coast: $6.500 per gallon (-2.4 cents)
• California: $7.182 per gallon (-4.0 cents)
• West Coast excluding California: $5.909 per gallon (-1.1 cents)
• Midwest: $5.623 per gallon (-12.6 cents)
• East Coast: $5.394 per gallon (-2.6 cents)
• Gulf Coast: $5.045 per gallon (-7.7 cents)
• Rocky Mountain: $5.493 per gallon (-5.6 cents)

The Gulf Coast remained the lowest-priced diesel market in the nation at $5.045 per gallon. Meanwhile, California continued to post the highest average price at $7.182 per gallon, more than $2.13 above the national average.

California Diesel Prices Remain Highest in the Nation

Although California diesel prices fell by 4 cents during the week, the state remains the most expensive fuel market for truck drivers.

The average diesel price in California declined from $7.222 per gallon to $7.182 per gallon. However, that figure is still $2.37 higher than the same week last year.

For fleets and owner-operators running freight through California, fuel costs remain significantly higher than in most other regions. Consequently, carriers often rely on fuel surcharges and careful route planning to help manage expenses.

Gasoline Prices Also Move Lower

While diesel prices matter most to commercial trucking, gasoline prices also declined nationally.

The average U.S. gasoline price fell 1.5 cents per gallon to $4.475 per gallon.

Regional gasoline trends were mixed:

• Midwest prices fell 4.7 cents.
• New England prices dropped 3.4 cents.
• The West Coast decreased 3.6 cents.
• The Gulf Coast increased 3.8 cents.
• The Lower Atlantic region rose 3.1 cents.

Despite the weekly decrease, gasoline prices remain $1.32 higher than the same period last year.

What Lower Diesel Prices Mean for Truck Drivers

Lower diesel prices can improve operating margins for carriers and owner-operators, especially when freight rates remain strong. During recent weeks, spot market rates have continued climbing across dry van, refrigerated, and flatbed freight, creating a more favorable environment for many trucking businesses.

However, diesel prices remain well above year-ago levels. Because of that, fuel expenses continue to put pressure on profit margins, particularly for smaller carriers and independent operators that purchase fuel at retail prices.

The recent decline may provide some short-term relief, but fuel costs remain a major factor affecting trucking profitability across the country.

Outlook for the Weeks Ahead

The latest EIA report shows diesel prices moving lower nationwide for another week, led by significant declines in the Midwest and Gulf Coast regions. If the trend continues, carriers could see additional fuel savings as freight volumes increase during the summer shipping season.

For now, the national diesel average remains above $5.50 per gallon, but the trucking industry will be watching closely to see whether recent downward momentum continues into June.