Dept. of Energy downwardly revises diesel price forecast for 2013, 2014

Updated Jun 20, 2013

The Department of Energy in its monthly Short Term Energy Outlook has again downwardly revised its forecast for the price of diesel for 2013, now projecting that diesel will average $3.88 a gallon this year, based on its own projections of dropping crude oil prices.

In its May forecast, the DOE’s Energy Information Administration had projected diesel to average $3.92 a gallon in 2013. In April it projected diesel to average $3.94 this year.

It’s also downwardly revised its 2014 projects by 2 cents, forecasting now that the average price in 2014 will drop 11 cents from this year’s average to $3.77 a gallon.

The average price for a gallon of diesel in 2012, according to the energy department, was $3.97. In 2011, diesel average $3.84 a gallon.

According to the DOE data, the price of a barrel of crude oil dropped to $97 in mid-April, a $22 drop from February 2013’s $119. That price, however, recovered in May to average $103 a barrel. The EIA says it projects crude oil to average $102 a gallon in the second half of the year and $100 a barrel in 2014.