Fuel Costs Persistently Decrease Statewide in Iowa
In Des Moines, Iowa, the average price of regular unleaded gasoline has seen a significant decrease compared to the same period last year. As of early August 2025, the average price hovers around $2.94-$2.96 per gallon, marking a drop of roughly 29 to 34 cents compared to last year[1][2][4][5].
The primary reason for this decline is the lower cost of crude oil compared to last year. Currently, crude oil prices (West Texas Intermediate and Brent) are in the mid-to-upper $60s per barrel, a stark contrast to the mid-to-high $70s to low $80s per barrel range they were in a year ago[1][4][5].
While there has been a slight price increase in the past week (around 4-5 cents), prices remain significantly below last year’s levels due to less expensive crude oil[1][2][4][5]. Additionally, gasoline demand is beginning to ease as August progresses, contributing to stable and slightly declining pump prices[1].
Seasonal factors such as the transition out of peak summer demand and monitoring of possible tropical storm impacts also influence price fluctuations. However, these factors have not yet raised prices above last year’s levels[1].
In contrast, diesel prices in Des Moines have seen a slight increase from the $3.51 average a year ago, with this week's average sitting at $3.55 per gallon[3]. Despite this increase, Iowa diesel prices remain well below the national average of $3.74[6].
Interestingly, while WTI and Brent crude oil prices have seen a slight increase this week, reaching $69.72 and $73.00 per barrel respectively, natural gas prices at the Henry Hub have decreased, falling to $3.02 per MMbtu[3][7].
Retail heating oil and propane prices will resume reporting in October. The national average price of regular unleaded gasoline also fell 2 cents to $3.14 per gallon this week[8].
In conclusion, the key reason for the year-over-year decline in gasoline prices in Des Moines is the lower cost of crude oil compared to last year, combined with waning summer demand and steady supply conditions[1][2][4][5].
The decrease in the average price of regular unleaded gasoline in Des Moines can be attributed to the lower cost of crude oil, with current prices significantly lower than last year. Meanwhile, personal-finance considerations might encourage individuals to allocate their finance resources more efficiently as they save on energy expenses at the pump.
