GasBuddy analyst Patrick De Haan said gasoline and diesel prices saw a “hard reversal” last week, with Ohio and Georgia recording the largest declines.
In a post on social media platform X on Sunday, De Haan attributed much of the move to temporary fuel-tax suspensions and strategic supply actions rather than to ordinary market forces.
He noted that gasoline prices dropped 39 cents in Ohio and 38 cents in Georgia, while diesel prices fell 46 cents in Georgia and 28 cents in Ohio. The analyst said the declines were led by states “temporarily suspending their fuel taxes.” He also pointed to the Trump administration’s “arm twisting” of G7 nations to release strategic supplies of oil and petroleum stocks.
According to AAA, gasoline in Georgia averaged $3.86 per gallon, while diesel averaged $5.8440. In Ohio, gasoline averaged $3.87 per gallon, compared with $6.3275 for diesel.
He described the movement as “not exactly the most organic decline,” arguing that fuel-tax suspensions and policy intervention were influencing prices in new ways.
States Move to Ease Fuel Costs
Last week, Ohio lawmakers approved a 90-day suspension of the state’s motor fuel taxes, backed by $725 million from the General Revenue Fund surplus. Gov. Mike DeWine subsequently signed the measure into law. Georgia also suspended its motor fuel taxes for 30 days, citing global market volatility and petroleum supply disruptions.
Meanwhile, Indiana has repeatedly extended its gasoline tax suspension, while Kentucky and Illinois delayed scheduled fuel tax increases. Utah cut its fuel tax by 6 cents per gallon through year-end.
According to AAA, the average diesel price on Monday was $6.3434 per gallon, down 12 cents from the previous week’s average. Meanwhile, the average gasoline price stood at $4.3697 per gallon, a decline of 11 cents from the previous week.
G7 Acts as Diesel Prices Climb
On Friday, G7 nations agreed to release up to 100 million barrels of emergency oil and diesel stocks over four months while avoiding a potential diesel export ban among themselves, though the Trump administration has not ruled out future restrictions.
America’s elevated diesel prices stem from an inefficient distribution system rather than insufficient production. Phillip Bruner, a professor at the University of Washington’s Foster School of Business, told Benzinga that the lack of affordable transportation options to the coasts, where diesel prices are highest, is a key challenge.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
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