Diesel Prices Trending Down Across Country
Diesel Cheaper Than Gasoline in California, Still Highest Average Price
One of the big purchase factors for a diesel vehicle, aside from the great torque and fuel economy, is how quickly the owner will recoup the option cost (between $2,000 and $10,000, depending on model) through fuel savings. That calculation can vary wildly depending on the current price of diesel fuel. When diesel is selling at a premium to gasoline, that payback period stretches out to a longer time frame, and when it is below, the payoff is faster. At least over the last few weeks in June, the diesel price trend has been uniformly favorable to U.S. drivers.
The national average as of June 29, 2015 was $2.843 per gallon, down $0.016 from a week ago, and a whopping $1.077 from a year ago. The region with the cheapest diesel prices was the Midwest, with an average of $2.731, while California was unsurprisingly the highest at $3.141 per gallon. According to Energy Information Administration (EIA) figures, diesel fuel is still taxed at a slightly higher rate than gasoline but conversely requires less refining, even after the switch to ultra-low sulfur diesel fuel (ULSD) in 2007.
However, as we’ve seen many times before, fuel prices can be volatile and seasonal, as well as affected by geopolitical factors, so this season of cheap diesel may not last forever. Fill up on the cheap while you can.