Gasoline and Diesel Prices Expected to Fall

Gasoline and diesel prices will fall in 2023 and 2024, according to the latest projections from the U.S. Energy Information Administration (EIA).

In its January short term energy outlook (STEO), the EIA noted that gasoline prices decline in its forecast “as both wholesale refining margins and crude oil prices fall”.

“We forecast U.S. gasoline refining margins will fall by 29 percent in 2023 and fall by 14 percent in 2024, leading to retail gasoline prices averaging around $3.30 per gallon in 2023 and $3.10 per gallon in 2024,” the STEO stated.

The gasoline retail price averaged $3.97 per gallon in 2022 and $3.02 per gallon in 2021, the latest STEO highlighted.

U.S. refining margins for diesel were forecasted to drop by 20 percent in 2023 and by 38 percent in 2024 in the STEO.

“We expect retail diesel prices to average about $4.20 per gallon in 2023, down 16 percent from 2022. In 2024, we expect prices to continue to fall, and average near $3.70 per gallon,” the STEO added.

On-highway diesel fuel averaged $5.02 per gallon in 2022, the January STEO outlined. The EIA’s previous STEO showed that this commodity averaged $3.29 per gallon in 2021.

As of January 12, the average price for regular gasoline in the U.S. is $3.272 per gallon, according to the AAA gas prices website. Yesterday’s average stood at $3.267 per gallon, the week ago average stood at $3.285 per gallon, the month ago average stood at $3.262 per gallon, and the year ago average stood at $3.301 per gallon, the AAA site showed.

The average price for diesel in the U.S., as of January 12, is $4.618 per gallon, the AAA site highlighted. Yesterday’s average stood at $4.627 per gallon, the week ago average stood at $4.685 per gallon, the month ago average stood at $4.917 per gallon, and the year ago average stood at $3.588 per gallon, according to the AAA site.

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