Diesel Prices Fall Below $5
What’s New
According to the U.S. Energy Information Administration, diesel prices have dipped below $5 per gallon. The last time this was seen was in March 2021.
After hitting its peak on June 20 with a nationwide average of $5.81 per gallon, we are seeing a decline in both gasoline and diesel prices.
Diesel is currently on a 7-day streak of declining prices. However, it is still $1.629 more than it was by this time last year.
Looking at the chart below, the largest price decreases were on West Coast less California and West Coast, standing at 17.5 and 17.3 cents per gallon, respectively.
Diesel Gas 2023 Predictions
The EIA is forecasting global liquid fuel consumption will grow by 2.2 million barrels per day in 2022 and 2.0 million barrels per day in 2023.
US crude oil production is an average of 11.9 million b/d in 2022 and 12.8 million b/d in 2023, which would set a record for most U.S. crude oil production in a year. The current record is 12.3 million b/d, established in 2019.
US regular gasoline retail prices averaged $4.11 per gallon (gal) in the first half of 2022 (1H22), up from $2.78/gal in 1H21. The EIA forecasts gasoline prices will average $4.05/gal in 2022 and $3.57/gal in 2023. US diesel prices averaged $4.91/gal in 1H22, up from $3.06/gal in 1H21. They also forecast diesel prices will average $4.73/gal in 2022 and $4.07/gal in 2023.
Diesel Gas August Predictions
According to EIA, based on their Short-Term Energy Outlook April 12 update, EIA is predicting retail diesel fuel will average $4.57 per gallon.
They further calculate the average U.S. household will spend about $2,945 on gasoline in 2022, which is $455 (18%) more than in 2021.Â
Conclusion
There is finally a light at the end of the tunnel that is expensive fuel. Given the prediction by EIA, we can expect these prices to continue to drop, forecasting an average of $4.07 per gallon in 2023. For more updates like this one, subscribe to TopMark Funding for continuous updates.
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