National Average Price of Gasoline Dips, Diesel Falls to Lowest Level in >900 Days

For the second straight week, the nation’s average price of gasoline has declined, falling 3.2 cents compared to a week ago to $3.41 per gallon today, according to GasBuddy® data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country. The national average is down 11.6 cents from a month ago and is 42.5 cents per gallon lower than a year ago. The national average price of diesel has fallen 3.4 cents in the last week and stands at $3.72 per gallon—the lowest level since January 2022, over 900 days ago.

“As summer driving season comes to a gradual close, we continue to see gasoline prices declining in most of the country as demand remains muted. Incredibly, the drop has also caused diesel fuel prices to crumble to their lowest level since before Russia’s invasion of Ukraine,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “As long as we can avoid a major hurricane threatening refineries in the Gulf region, I believe we could see declines continue into this week, with the national average potentially dipping to its lowest level of the summer. However, should economic data come in better than expected, there still could be a short-lived rally. While some states may also see gas prices rise to routine price cycling, primarily in the Great Lakes and Florida, prices across the board remain lower in every state compared to a year ago.”

OIL MARKETS

After four weeks of declining prices, oil saw its first weekly gain last week as unemployment data showed fewer Americans losing their jobs; a positive sign after the labor market had added fewer than expected jobs in July. In addition, rising geopolitical tensions in the Middle East and declining oil inventories have aided oil’s rally. Iran has been weighing a significant response to Israel’s attacks but has been under pressure from many governments to avoid any escalation and talk of a potential ceasefire has emerged. However, oil’s rally may be limited as OPEC plans to return some oil to the market in the weeks ahead, while U.S. oil inventories have fallen more than 30 million barrels since late June. In early Monday trade, WTI was up 92 cents per barrel to $77.76, up from $72.49 a week ago. Brent was also trading higher, up 80 cents to $80.46 per barrel, a rise from $75.87 a week ago.

OIL AND REFINED PRODUCTS

Last week’s report from the EIA showed a 3.7 million barrel drop in U.S. oil inventories, which are now 16 million barrels lower than a year ago, while the SPR tacked on another 700,000 barrels to rise 8% above its year-ago level. Weekly estimates for U.S. oil production showed a rise to 13.4 million barrels per day, 800,000 bpd higher than a year ago. Gasoline inventories climbed a modest 1.3 million barrels to 225.1 million, up about 9 million compared to a year ago. Distillate inventories increased by 900,000 barrels to 127.8 million, nearly 11% higher than a year ago. Implied gasoline demand, EIA’s proxy for retail demand, fell 282,000 bpd last week to 8.97 million barrels per day. Refinery utilization rose 0.4 percentage points to 90.5%.

FUEL DEMAND

According to GasBuddy demand data driven by its Pay with GasBuddy™ fuel card, U.S. retail gasoline demand saw a drop of 3.8% for the week ending August 10 (Sun-Sat). Broken down by PADD region, demand fell 6.9% in PADD 1, likely due partially to Tropical Storm Debby causing mass flooding, fell 2.1% in PADD 2, fell 4.4% in PADD 3, fell 0.6% in PADD 4, and fell 0.0% in PADD 5. GasBuddy models U.S. gasoline demand at 8.94 million barrels per day.

GAS PRICE TRENDS

The most common U.S. gas price encountered by motorists stood at $3.49 per gallon, unchanged from last week, followed by $3.39, $3.29, $3.19, and $3.59 rounding out the top five most common prices.

The median U.S. gas price is $3.34 per gallon, down 3 cents from last week and about 7 cents lower than the national average.

The top 10% of stations in the country average $4.39 per gallon, while the bottom 10% average $2.86 per gallon.

The states with the lowest average prices: Mississippi ($2.92), Oklahoma ($2.96), Louisiana ($2.96).

The states with the highest average prices: Hawaii ($4.58), California ($4.54), and Washington ($4.16).

Biggest weekly changes: Florida (-16.2c), Indiana (-13.2c), New Mexico (+13.0c), Delaware (+10.5c), Michigan (-10.3c)

DIESEL PRICE TRENDS

The most common U.S. diesel price stood at $3.69 per gallon, down 10 cents from last week, followed by $3.59, $3.79, $3.49, and $3.99 rounding out the top five most common prices.

The median U.S. diesel price is $3.64 per gallon, unchanged from last week and about 7 cents lower than the national average for diesel.

Diesel prices at the top 10% of stations in the country average $4.61 per gallon, while the bottom 10% average $3.12 per gallon.

The states with the lowest average diesel prices: Oklahoma ($3.26), Texas ($3.27), and Louisiana ($3.39).

The states with the highest average diesel prices: Hawaii ($5.38), California ($4.88), and Washington ($4.44).

Biggest weekly changes: Rhode Island (-11.0c), Florida (-10.4c), Hawaii (-6.8c), Washington (-6.3c), New Mexico (+5.6c).