EIA projects lowest fuel costs since 2004

By Tyson Fisher, Land Line staff writer | 12/24/2014

Fuel prices are hitting record lows, and they are expected to sink lower. The Energy Information Administration has projected the average annual costs of gasoline and motor oil per household in 2015 to be the lowest in more than a decade.

Currently at $2,512 for the year, motor fuel costs for households in 2015 could be $1,962. Several factors, including rapidly declining prices at the pump and more fuel-efficient vehicles, were key in determining the costs.

Household spending for fuel has not reached these levels since 2004. The last time average costs dipped below $2,000 was 2009.

Average annual diesel prices per gallon for 2012, 2013 and 2014 were $3.97, $3.92 and $3.82, respectively. At a 10-cent drop, 2014 experienced the largest drop when compared with the previous year. However, the EIA expects average diesel prices for 2015 to be $3.07, a dramatic decrease from 2014.

As of press time, average diesel prices are $3.275 a gallon, according to TruckMiles.com. No state in the Lower 48 states has hit averages above $4 in more than two weeks, and two states, Missouri and Montana, have averages below $3, the first time this year.

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