Back to June 2025 Industry Update
June 2025 Industry Update: Fuel Prices
Average fuel prices declined for the third consecutive month driven by excess global supply concerns.
Key Points
- The national average price of diesel declined further in May, dropping 1.9% MoM, or $0.067, to $3.499.
- Compared to May 2024, diesel prices were down 8.5% YoY, or just over $0.32.
- Draws on U.S. Commercial Crude Inventories outpaced builds in May by -4.4M barrels (bbls) and fell short of the consensus of -6.5M bbls.
Summary
The national average price of fuel continued to decline for the third consecutive month in May after notable sequential increases in January and February. Following May’s nearly $0.07 MoM drop, average diesel prices registered slightly higher than the lows recorded in December of last year and prior to that, their lowest level since September 2021.
Weekly fluctuations in the Department of Energy (DOE)/Energy Information Administration (EIA) benchmark diesel price were mixed in May but mostly negative throughout the month. Through the first two weeks, the average retail price of diesel fell by a total of roughly $0.04, continuing a streak of five consecutive weeks of declines that began in April. However, by the third week, average fuel prices rebounded, rising $0.06 WoW to just under $3.54 per gallon. The momentum was unsustainable, though, following Memorial Day, as the previous week's gains were all but erased following a nearly $0.05 decline WoW to close out the month—just below $3.49 and just over $0.02 higher compared to the lows recorded during the week of Christmas last year.