Diesel prices expected to fall in 2023

The average price per gallon of US diesel on Friday was $4.80, down 20 cents from last week and 55 cents off last month’s average, according to information provided by AAA.

Experts expect this trend to continue in the new year.

Several factors are contributing to this price decline, including falling prices for Brent crude oil, declining wholesale and retail profits, and increased refining volumes.

At the moment, diesel retail prices differ from wholesale costs due to high margins, but these prices are expected to drop to about $4.25 per gallon retail, especially for fleets that buy fuel on a cost-plus basis.

However, in 2023, diesel fuel prices may fall even further due to some factors such as a ban on marine imports of oil products from Russia, a slowdown in the US economy, and an increase in diesel fuel production at refineries.

Patrick De Haan, head of oil analysis at Gas Buddy, predicts further price declines due to “improved supply and high refinery productivity.”

“At this point, I think there are many reasons for diesel prices to fall further. It’s a bit unclear how long this will last until 2023, but at this point I’d say it’s still expected to drop by about 40 to 80 cents a gallon,” De Haan said.