The average diesel price in the U.S. is still projected to fall in 2014, but not as much as predicted last month, according to the Department of Energy’s Energy Information Administration’s latest Short Term Energy Outlook report.
The report projects the U.S.’ average diesel price to fall to $3.85 this year, a 7-cent drop from 2013’s average of $3.92 and a 12-cent drop from 2012’s $3.97.
The EIA also predicts the price to fall another 7 cents in 2015 to $3.78 a gallon.
Both of those prices are upward revisions from last month’s report, which forecast the price to fall to $3.83 in 2014 and to $3.73 in 2015.
This is the fifth month in a row EIA has upwardly revised its 2014 projection, coming up 12 cents from November’s forecast price of $3.73 for 2014.
The continued projection of diesel price declines stems from a potential growth in supply that will outpace growth for demand, EIA says.