In a move that literally surprised no one, the federal government’s Energy Information Administration yesterday released its monthly forecast of fuel prices: as of today, it expects the average price of gasoline at the pump to rise to $3.55 per gallon. This national average is an $0.11 increase from last month, which was still high, unless you live in Southern California where commuters routinely pay more than $4.00 per gallon.
According to The Detroit News, demand for gasoline this year will clip last year’s consumption rate of 8.72 million barrels per day. That’s a lot of gasoline, and that doesn’t even include those who depend on diesel. The same source estimates that Americans use 3.77 million barrels of diesel per day. It’s worth noting that these figures are slightly less than what the Energy Department predicted, yet the price rose anyway.
Perhaps it’s also worth noting that the Energy Department is not expecting a huge increase in demand for 2014, noting in its report that it expects use to remain around 8.72-8.73 million barrels of gasoline per day and a slight increase in diesel to 3.83 million barrels per day.
We’re pulling for the latter, by the way, which may help to reduce the former. Now, more than ever, American auto buyers will have an increased selection of diesel-motivated cars and SUVs and trucks from which to buy, including the upcoming Chevy Cruze Diesel and Jeep Grand Cherokee, in addition to the stalwarts from Germany. And more may be on the way.
As for the cost of gasoline, well, at least it ain’t summer yet. Anyone wanna bet on $5.00 per gallon by July?
Source: The Detroit News