DOE Lowers Diesel Fuel Price Outlook by 9¢, to $3.89 a Gallon
The Department of Energy lowered its projected diesel average for this year by 9 cents, to $3.89 a gallon, and by 14 cents next year, to $3.93.
The projected decline follows two big boosts — an 18-cent hike in its forecast last month to nearly $4 a gallon, and a 38-cent increase the month before that.
Trucking’s main fuel averaged $2.99 at the pump last year, DOE said in its monthly short-term energy outlook released Tuesday.
Regular gasoline, which averaged $2.78 last year, will average $3.63 a gallon this year, 7 cents below DOE’s April outlook. Gas will average $3.66 a gallon in 2012.
The price of regular gas during this year’s “driving season” from April through September will be $3.81 — up more than $1 than a year ago, but 5 cents below last month’s outlook.
Diesel is already well over the projected yearly average, having risen steadily since Thanksgiving, despite Monday’s 2-cent decline to $4.104 per gallon. That was just the third drop in the past 23 weeks, but was the biggest decline since August.
Gasoline is now close to $4 a gallon, averaging $3.965 per gallon, DOE said Monday in its weekly pump-price survey.
The lowered projections are due to falling crude oil prices, which slipped almost $17 in the first week of May to near $97 a barrel, DOE said.
Oil, which averaged $79 per barrel last year, will average $103 this year and $107 in 2012, down $4 and $6 per barrel, respectively, from last month’s outlook.
DOE said it expects oil markets to tighten as growing liquid fuels demand in emerging economies and slowing growth in non-OPEC supply maintain upward pressure on oil prices.
