U.S. Diesel Prices Down Slightly in the Latest EIA Report

Diesel Prices Update: Early January Trends

The latest data from the U.S. Energy Information Administration (EIA) shows that diesel prices continue to ease at the start of January. The national average for on-highway diesel fell to about $3.48 per gallon for the week ending January 5, 2026. This marks a small week-to-week decline and keeps prices well below the highs recorded in late 2025.

Refiners are entering the year with steady distillate inventories, according to EIA’s Weekly Petroleum Status Report. Distillate stocks — which include diesel — were slightly higher in the latest reporting period. Stable supply levels may help limit major price swings if demand remains consistent.

Regional Prices: West Coast Still Highest

Regional diesel prices show wide differences across the country, a pattern that has continued for several months:

• West Coast: Still the most expensive region, averaging above $4.10 per gallon.
• Rocky Mountains: Prices are generally steady, sitting just under the national average.
• Midwest: Slight declines brought the regional average closer to $3.30 per gallon.
• Gulf Coast: Remains the lowest-priced region, hovering near $3.10 per gallon.
• East Coast: Mixed movements, with New England slightly up and the Lower Atlantic slightly down.

These differences reflect transportation costs, refinery access, and local tax structures.

Outlook on Diesel Prices for 2026

EIA projections suggest that diesel prices may stay relatively stable through early 2026. Current inventory levels and global supply expectations indicate modest downward pressure, although seasonal demand and crude oil markets could shift conditions later in the year.

Short-term volatility remains possible, but analysts expect diesel averages for 2026 to remain slightly lower than 2025 levels.

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