Diesel to Average $4.18 This Year, DOE Says
Diesel fuel will average $4.18 a gallon this year and $4.27 in 2009, the Department of Energy said Tuesday.
The increase in price from last year’s $2.77 average — though lower than the recent weeks’ prices, which topped out at $4.764 on July 14 — reflect higher diesel demand, particularly in emerging markets, DOE said in its monthly short-term energy outlook.
Oil priceswill average $119 this year after averaging $72 a barrel in 2007, and climb to an average $124 next year, DOE said. Oil closed under $115 Monday after closing at a record $145.18 on July 14.
Gasoline’s average this year will be $3.65 a gallon — up from last year’s $2.81 average but below this week’s $3.809 weekly surveyed price, and about 50 cents under the $4.114 record set four weeks ago.
Gas prices are expected to continue falling slowly, averaging just less than $3.80 per gallon over the next few months, reflecting continuing weak gasoline margins because of the decline in gasoline consumption and growth in ethanol supply, DOE said.
