Feds revise fuel price forecast

| Thursday, December 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