The U.S. Energy Department expects regular-grade gasoline will average $3.55 a gallon this year, up from $3.44 in last month’s forecast.
Prices last year averaged $3.63 a gallon, and current estimates have the average gallon costing $3.39 in 2014. According to the Energy Department, gasoline consumption this year will average 8.73 million barrels a day, up from 8.72 million last year. Demand could fall in 2014 back to 8.72 million.
The EIA also expects that on-highway diesel fuel retail prices will average $3.92 per gallon this year, and $3.82 per gallon next year. In the fourth quarter of 2012, on-highway diesel fuel retail prices averaged $4.02 per gallon.