Diesel Average Drops Below $4 Per Gallon
We used to do constant updates regarding diesel prices as a national average, but have since slowed down in that regard. It is time we bring out the champagne, though, as for the first time in over a year, the average diesel price across the nation has fallen below the $4 per gallon threshold.
Details
This has been a long time coming; the last time diesel prices were at this rate was in February 2022, and it has been quite a few months since diesel was at $5 per gallon.
So what caused the shift? The answer comes from the Department of Energy’s Energy Information Administration, which says that while some places such as those in California have more expensive diesel at $4.83 per gallon, the Gulf Coast region and Lower Atlantic were both full of stations averaging $3.59 and $3.79, respectively.
One of the possible reasons speculated for the decrease in diesel fuel prices despite ongoing sanctions with the Russian government is the Biden Administration’s insistence on moving away from fossil fuels and the impact that stance has on heavy hitters within the trucking industry. After all, why would a fleet of thousands of trucks such as PepsiCo buy a diesel truck if in a single decade it may become illegal to drive it, when the corporation can buy an electric instead and know it will be a long time before they become obsolete?
Conclusion
Is it possible that we will see diesel prices below the fabled $3 per gallon mark ever again? Yes, but it is highly unlikely, if only due to inflation. The last time prices were that low was in 2020, during the COVID-19 pandemic but before the supply chain issues started to take place due to economic slowdown. With the Consumer Price Index increasing from 258 then to 303 now, it will certainly be an uphill battle. While a similar global event could trigger a steep drop in demand for diesel that hampers prices, it goes without saying that there is no desire for another pandemic any time soon. We will take the $4/gallon price tag as it is!
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