Diesel Price Drops 6.3¢ a Gallon to $4.146
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The national average diesel price tumbled 6.3 cents — in its fifth straight decline — to hit $4.146 a gallon, according to Energy Information Administration data released Nov. 27.
Diesel’s price has fallen each week since a 10.1-cent rise Oct. 23. Over that time, trucking’s main fuel has decreased between 9.1 cents (Oct. 30) and the current 6.3 cents.
A gallon of diesel now costs 99.5 cents less than it did at this time in 2022.
Diesel’s average price fell in all 10 regions in EIA’s weekly survey, ranging from a high of 9.2 cents a gallon in the Midwest to a low of four-tenths of a cent in the Central Atlantic.
U.S. average on-highway #diesel fuel price on November 27, 2023 was $4.146/gallon, DOWN 6.3¢/gallon from 11/20/23, DOWN 99.5¢/gallon from year ago #truckers #shippers #fuelprices https://t.co/lPvRNZFztg pic.twitter.com/bAU7Z0kPQS — EIA (@EIAgov) November 28, 2023
Likewise, the price of gasoline also fell in all regions, dipping an average of 5.1 cents to reach $3.238 a gallon.
According to the American Automobile Association, gasoline prices have been in a steady decline for 60 consecutive days, which it said is the longest streak of declines in more than a year — letting drivers pass on savings at the pump to consumer retailers during the all-important holiday season.
Tom Kloza, the founder and global head of energy analysis at the Oil Price Information Service, told Transport Topics there will likely be a nationwide glut of gasoline for the next several months, and he said diesel could continue to fall, but likely not as fast as gasoline. That’s because diesel, a source for home heating, is also used in an estimated 5 million homes in the Northeast and in Europe.
“On the diesel side, we’ve had a colder than normal temperature in Europe, but it’s been a bit warmer in the Northeast, and right now, diesel is about one dollar to more than a dollar cheaper than they were last year,” he said. “Last year we got bailed out by a winter that wasn’t, and we could see some price increases if it’s cold in the next few weeks. Cold weather could push the price up on the diesel side and I think gasoline will be cheaper through the middle of the winter.”
While the price of crude has fluctuated in the last year from a high of $93.68 a barrel in late September year-to-year, oil is slightly lower than it was a year ago. It traded at $77.24 on Nov. 22 and on Nov. 27 was $75.05.
U.S. average price for regular-grade #gasoline on November 27, 2023 was $3.238/gal, DOWN 5.1¢/gallon from 11/20/23, DOWN 29.6¢/gallon from year ago #gasprices https://t.co/jZphFa0Ptd pic.twitter.com/HtdWXyQZgo — EIA (@EIAgov) November 28, 2023
The falling price of oil, gasoline and diesel comes at a time when OPEC+ is set to decide on production levels.
“The OPEC meeting is that the expectation is that they better roll over their production quotas through the first quarter of 2024, or there will be turmoil and price drops for crude,” Kloza said. “The expectation is that the Saudis will produce about a million barrels a day less than their quotas and the other members will toe the line.”
Meanwhile, a new report from the EIA shows domestic oil production is soaring to record levels and in August, the last month that figures were available, U.S. companies produced more than 13 million barrels of oil per day for the first time in American history. That figure is an 8.9% increase year-over-year and it’s more than 1 million barrels per day since last summer when oil companies produced 11.98 million barrels per day.
Meanwhile, University of Houston energy researchers are suggesting in a report dated Nov. 15 that hydrogen can potentially be a cost-competitive and environmentally friendly alternative to traditional liquid fuels, and that supplying hydrogen for transportation now in the currently oil-dominated greater Houston area could be profitable today.
The white paper report, titled “Competitive Pricing of Hydrogen as an Economic Alternative to Gasoline and Diesel for the Houston Transportation Sector,” examines the promise for the potential of hydrogen-powered fuel cell electric vehicles to significantly reduce greenhouse gas emissions in the transportation sector.
The report said because of its extensive pipeline and petroleum refining production, the Houston area is well placed to be a leader in hydrogen production, especially as it pertains to transportation.
“It has more than sufficient water and commercial filtering systems to support hydrogen generation,” the study states. “Add to that the existing natural gas pipeline infrastructure, which makes hydrogen production and supply more cost effective and makes Houston ideal for transitioning from traditional vehicles to hydrogen-powered ones.”
Several original equipment manufacturers and others in the trucking industry are investing billions of dollars in research and development on hydrogen-related projects as an eventual replacement for diesel fuel.
U.S. On-Highway Diesel Fuel Prices
EIA.gov
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