Feds say diesel will average $3.84 this year, same as 2011

By David Tanner, Land Line associate editor | Thursday, August 09, 2012

The U.S. Energy Information Administration predicts the national average for diesel will be the same for 2012 as it was in 2011 – $3.84 per gallon. The 2012 prediction is up a nickel from what the agency estimated last month, according to the August edition of the Short Term Energy Outlook.

Analysts say rebounding oil prices and drought factors in the U.S. will bump energy prices up from optimistic June and July predictions.

According to the August report, diesel prices are on pace to average $3.75 in September and October, $3.67 in November and $3.62 in December, all higher than the EIA predicted in the July issue of Outlook.

The EIA says diesel could average $3.62 per gallon in 2013.

The agency added a dime to last month’s prediction for gasoline prices as well, saying gas will average $3.53 for the calendar year – also the same price that gas averaged in 2011. The EIA says gas will average $3.33 in 2013.

In related news, the EIA says U.S. oil production is still on pace to average 6.3 million barrels per day in 2012, the highest average since 1997.

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