Diesel Prices Down as Fuel Supplies Rise in Latest EIA Report

U.S. Diesel Prices Drop Again as Fuel Supplies Shift in Early December

The latest data from the U.S. Energy Information Administration (EIA) show diesel prices and gasoline prices moving lower in early December. Both fuels posted week-to-week declines, while refinery output and fuel inventories shifted ahead of the winter season. The new update offers a clearer look at how supply and demand are shaping fuel costs for the trucking industry.

Diesel Prices Show Steady Decline Nationwide

The newest EIA Gasoline and Diesel Fuel Update shows the national average diesel price falling to about $3.66 per gallon for the week ending December 8, 2025. This marks another weekly drop and reflects stronger fuel supplies, solid refining activity, and lower crude costs.

Regional diesel price averages continue to vary:

• East Coast: near $3.73
• Central Atlantic: close to $3.95
• Midwest: around $3.64
• Gulf Coast: about $3.33
• West Coast: roughly $4.37

Most regions posted declines. The Midwest and Rocky Mountain areas saw some of the sharpest week-to-week drops. The Gulf Coast remains the cheapest region for diesel, while the West Coast stays the most expensive.

Gasoline Prices Continue Seasonal Drop

Gasoline prices also fell again nationwide. The U.S. average price for regular gas is now around $2.94 per gallon, marking one of the lowest points seen in the past few years.

Regional averages include:

• East Coast: about $2.89
• Midwest: around $2.72
• Gulf Coast: near $2.49
• West Coast: around $3.96

Gasoline prices dropped in almost every region. Strong refining activity and increased gasoline inventories continue to push prices lower.

Fuel Supplies Rise as Crude Stocks Tighten

The EIA’s Weekly Petroleum Status Report, which covers the week ending December 5, shows crude oil stocks falling by about 1.8 million barrels. Even with the dip in crude inventories, both gasoline and distillate supplies grew.

Refiners processed higher volumes, which helped boost fuel production. Gasoline supplies increased as refiners met seasonal demand. Distillate supplies, which include diesel, also grew and now sit close to seasonal norms. This rise in distillate inventories played a key role in lowering diesel prices across many regions.

Stronger product inventories often ease pressure on retail prices. Winter usually brings higher demand for heating fuels, but current supply levels remain supportive of lower pump prices for the start of the season.

Why Diesel Prices Are Moving Lower

Several factors are shaping the movement of diesel prices this month:

Crude Oil Costs

Crude oil remains the biggest driver of fuel prices. Recently, global oil prices have softened due to steady production from major suppliers and slower demand growth. Even a slight dip in crude prices can push diesel and gasoline costs lower.

Higher Refinery Output

Refiners increased production of both gasoline and distillate fuels. Higher output boosts inventories and gives the market more supply to work with. When supply grows faster than demand, prices tend to fall.

Seasonal Patterns

Diesel demand often shifts in winter due to weather, freight cycles, and heating needs. Early December typically brings more stable demand, and this year is showing similar patterns. As a result, diesel prices continue to ease.

What Lower Diesel Prices Mean for Trucking

Changes in diesel costs directly affect trucking. A national drop of about nine cents per gallon brings immediate fuel-cost relief. When diesel stays lower for several weeks, the savings can add up quickly for long-haul fleets and independent drivers.

Even so, large price gaps between regions remain. The West Coast sits more than a dollar above the Gulf Coast average. Drivers planning routes through high-cost states may still face heavier fuel expenses. Price swings from one state to another can influence decisions about where to fuel up.

Lower gasoline prices also help stabilize freight demand. When passenger-vehicle fuel costs drop, consumer activity often rises. This can support freight volumes in retail and manufacturing, which may benefit trucking as a whole.

Inventory Levels to Watch Going Forward

The next several EIA reports will give a better look at where diesel prices may head in late December. Inventory levels for distillates will be an important factor. If supplies continue to rise, diesel may stay on a downward path. However, cold weather or supply disruptions could tighten inventories.

Crude oil markets also remain a key influence. Price changes in global oil markets often show up at U.S. pumps within weeks. Any major increase in crude prices could slow or reverse the current decline in diesel and gas prices.

Refinery maintenance schedules, import levels, and shipping conditions may also affect regional price differences through winter.

Key Numbers from This Week’s  Diesel Prices Update

• National Diesel Average: ~$3.66/gal
• National Gasoline Average: ~$2.94/gal
• Crude Stocks: down ~1.8 million barrels
• Distillate Inventories: rising
• Gasoline Inventories: rising

These trends point to a fuel market with strong supply at the start of December. If current conditions hold, diesel prices could remain stable or keep moving lower.