Diesel Fuel Price 9-2-25

AI Overview

The average US diesel fuel price per gallon from 2020 to 2025 was: $2.55 in 2020, $3.29 in 2021, $4.99 in 2022, $4.21 in 2023, and projected to be around $4.20 to $4.30 for 2024. For 2025, it is projected to be around $3.63. These figures represent annual averages, with prices varying significantly month-to-month due to factors like crude oil costs and market events. 

Here is a year-by-year breakdown: 

·       2020: $2.55 per gallon

·       2021: $3.29 per gallon

·       2022: $4.99 per gallon

·       2023: $4.21 per gallon

·       2024: The average for the year is expected to be in the $4.20 - $4.30 range.

·       2025: Projections place the average around $3.63 per gallon. 

Key Points:

·       Prices can fluctuate significantly month-to-month, as seen in the U.S. Energy Information Administration (EIA) data. 

·       Crude oil costs are a major factor influencing diesel prices, as seen by the high percentage of diesel's cost attributed to crude oil in February 2025. 

Average U.S. diesel fuel prices fluctuated significantly from 2020 to 2025, with a major spike in 2022 followed by a gradual decline. This trend was largely influenced by changes in crude oil prices. 

Here are the average annual retail prices per gallon for No. 2 diesel fuel: 

·       2020: $2.55

·       2021: $3.29*

·       2022: $5.00*

·       2023: $4.18*

·       2024: $4.00*

·       2025: Around $3.60, based on early-year data and forecasts. 

Note: The annual averages for 2021 through 2024 are estimated from monthly data reported by the U.S. Energy Information Administration (EIA). The 2025 figure is based on data and trends from the first half of the year. 

Key price drivers during this period

·       COVID-19 Pandemic (2020): Prices fell significantly in 2020 as lockdowns and economic shutdowns reduced the demand for fuel.

·       Post-Pandemic Demand (2021): As economies recovered and demand increased, prices began to rise.

·       Supply Concerns (2022): The average price surged to its highest point in 2022, fueled by crude oil market volatility and supply concerns following the invasion of Ukraine.

·       Price Normalization (2023–2024): Prices gradually returned to lower levels as markets stabilized.

·       Declining Prices (2025): Prices continued to trend downward in early 2025, supported by increased oil production. 

https://www.google.com/search?q=average+price+of+us+diesel+fuel+per+gallon+by+year+from+2020+to+2025+ai

Comments

Diesel Prices were reduced from $4.20/gal. in 2024 to $3.60/gal. in 2025. This cut Truck Transportation Costs and allowed food prices to be reduced in 2025.

Norb Leahy, Dunwoody GA Tea Party Leader