Latest Diesel Prices See Small Decline, West Coast Still High

Diesel Prices Weekly Update – August 18, 2025

The Diesel Prices headline for the week ending August 18 shows a modest decline in latest fuel market report from EIA. Retail diesel averaged $3.71 per gallon, down from $3.75 the previous week, a decrease of about 1.1 percent. However, prices still sit slightly above last year’s $3.70 level, showing a small year-over-year increase of less than 1 percent.

Regional Diesel Price Shifts

Regional prices moved in different directions. On the East Coast, the average price reached $3.73, showing a small drop from last week. The Midwest posted $3.70 per gallon, also a bit lower. The Gulf Coast remained the cheapest region at $3.34, while the Rocky Mountain region came in at $3.76. The West Coast once again recorded the highest prices, averaging $4.46, although that figure eased slightly compared with the week before.

Supply and Production Context

Refineries operated at high levels, running at more than 96 percent of capacity. They processed about 17.2 million barrels of crude oil daily, which was a slight increase from the previous week. Distillate fuel output, which includes diesel, climbed by nearly 200,000 barrels per day to reach about 5.3 million barrels per day. In contrast, gasoline production slipped to an average of 9.6 million barrels per day.

Inventory Trends Affecting Diesel Prices

Commercial crude oil inventories dropped by 6 million barrels, falling to just over 420 million barrels. That level is about 6 percent below the five-year average for this time of year. This decline in stock levels shows why diesel prices are only easing modestly. At the same time, higher diesel production provides some downward pressure, helping to keep prices from moving higher despite tight crude supplies.

What Truckers and Fleets Should Know

Diesel prices have relaxed modestly, offering some relief compared to earlier summer levels. The Gulf Coast continues to be the cheapest region, while the West Coast remains the most expensive. Rising distillate output from refineries could help steady prices in the coming weeks. Yet, shrinking crude inventories remain a concern, since they often limit how far diesel prices can fall.

Diesel Prices Snapshot

National retail diesel stood at $3.71 per gallon, down slightly from last week but still marginally higher than last year. Regional breakdowns showed the Gulf Coast at the lowest level near $3.34 per gallon, while the West Coast remained well above $4.45. Refinery utilization stayed strong at nearly 97 percent, and distillate production climbed above 5.3 million barrels per day. Meanwhile, crude oil inventories slipped to just over 420 million barrels, which is 6 percent below the five-year seasonal average.

Final Thoughts on Diesel Prices

Overall, Diesel Prices dipped slightly during mid-August. The increase in refinery output is providing stability, but falling crude inventories continue to balance out the market. Drivers may see a bit of relief at the pump, although the overall price picture still reflects tight conditions when compared to long-term averages.