U.S. diesel prices fall below $6 a gallon to two-month low

Investing.com -- U.S. diesel prices fell below $6 a gallon on Saturday for the first time in more than two months, as declining crude oil prices and weaker seasonal demand eased pressure on fuel costs.

The national average retail diesel price declined to $5.998 per gallon, according to fuel price tracking service GasBuddy, retreating from record highs reached in September.

Diesel prices surged earlier this year as the U.S.-Israeli conflict with Iran disrupted global oil supplies and Ukrainian attacks on Russian refineries constrained fuel production.

The national average surpassed the previous record set in 2022 on September 3, reaching $5.820 per gallon.

Prices subsequently exceeded $6 on September 10 before peaking at a record $6.519 on September 22.

California experienced particularly severe increases, with diesel briefly exceeding $10 per gallon amid limited refining capacity and stricter fuel specifications.

Elevated diesel costs have contributed to inflation by increasing transportation, agricultural, and freight expenses, placing additional pressure on businesses and consumers.

High fuel prices also became a major political issue during November’s midterm elections, which saw Democrats gain control of both chambers of Congress.

President Donald Trump’s administration introduced several measures to ease fuel costs, including temporary tax relief for red-dyed diesel and reduced sanctions on Russian fuel.

The government also launched an $8 billion assistance program for farmers facing higher energy expenses during the autumn harvest.

Recent declines in crude prices have provided additional relief, with Brent futures falling 18.5% over the past two weeks.

Refinery maintenance is also largely completed by November, allowing production to recover as facilities resume normal operations.

Gasoline prices have followed a similar trajectory, falling below $4 per gallon earlier this month for the first time since August 10, according to GasBuddy.