Diesel Drops 5.1¢

What’s New?

According to the Energy Information Administration, data report released on Sept. 12, diesel fuel dropped 5.1 cents to $5.033 a gallon.

The price of diesel fuel jumped on Aug. 29 to $5.115 after being below $5 for nine weeks.

Diesel Gas 2023 Predictions

EIA estimates that 99.4 million barrels per day of petroleum and liquid fuels were consumed globally in August 2022, up by 1.6 million b/d from August 2021.

US crude oil production is an average of 11.8 million b/d in 2022 and 12.6 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.

The U.S. retail price for regular grade gasoline averaged $4.56 per gallon (gal) in July, and the average retail diesel price was $5.49/gal. We expect retail gasoline prices to average $4.29/gal in the third quarter of 2022 (3Q22) and fall to an average of $3.78/gal in 4Q22. Retail diesel prices in our forecast average $5.02/gal in 3Q22 and $4.39/gal in 4Q22.

Diesel Gas September Predictions

According to EIA, based on their Short-Term Energy Outlook Sept. 1 update, EIA is predicting retail diesel fuel will average  $3.60 per gallon in 4Q22 and $3.61/gal in 2023. Retail diesel prices in the forecast average $4.90/gal in 4Q22 and $4.28/gal in 2023. 

Conclusion

With the predictions made by EIA about where fuel prices are going, we can only hope they are accurate. Fuel prices are influenced by many economic factors both domestic and foreign. On a domestic level, there are many things that could cause prices to skyrocket, like a railroad strike…which might happen…but fingers crossed it doesn’t.

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