Feds revise fuel price forecast

| 12/13/2007

The U.S. Energy Information Administration has sharply increased its estimate of what diesel fuel will cost in the coming months.

Back in November, the EIA predicted diesel would average $3.15 per gallon for the fourth quarter of 2007.

On Tuesday, Dec. 11, EIA officials published a Short Term Energy Outlook that revised the estimate to $3.28 per gallon – 13 cents higher than the earlier prediction, but lower than reality.

Monday, Dec. 10, the EIA reported that the average price for on-highway diesel – a combined average of ultra-low sulfur diesel and remaining supplies of low-sulfur diesel – was $3.325 per gallon.

In the Short Term Energy Outlook published in November, EIA officials predicted that diesel prices would average $3.09 in the year 2008. That prediction was changed this week to $3.21 per gallon.

As for the first quarter of 2008, EIA officials predicted a $3.14 average back in November. The outlook published this week amends that estimate to $3.29 per gallon – a difference of 15 cents.

– By David Tanner, staff writer