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Gas Prices To Be Higher Than Expected In 2013, Says Energy Dept

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Gas Pump With Boot

The price of gasoline will creep up faster than expected, the U.S. Department of Energy's latest figures show.

Its monthly Short-Term Energy Outlook had previously put regular-grade gasoline at an average of $3.44 per gallon, but it's now expected to reach 11 cents higher.

That's still lower than 2012 prices, according to Bloomberg. The average price of gas last year was $3.63 per gallon. 2014 may be cheaper still, at $3.39--though that estimate has risen from the previous $3.34 figure.

On-highway diesel prices are higher, due to market conditions and strong demand for exports. Prices are expected to average $3.92 per gallon in 2013, and $3.82 per gallon in 2014. Both these figures represent a drop from 2012's $3.97 per gallon.

Gasoline consumption is remaining fairly static, the DoE's figures unchanged at 8.73 million barrels per day. Last year's figures were around 10,000 barrels per day lower, with 2014 demand expected to be the same as 2012.

The slight rise in prices is due partly to an increase in the price of crude oil, and refinery outages in January both in the U.S. and Europe.

A peak of $3.73 per gallon is expected in May, due to the usual switch to summer-grade gasoline and the seasonal increase in demand.

Falling gasoline and diesel prices typically lead to drivers buying less efficient cars, though recent figures have shown the average efficiency of new vehicles sold is still increasing.

8.73 million barrels of gasoline per day is still an enormous amount, but the constant figure does suggest that a combination of rising prices and increasingly efficient cars may not be reducing gasoline use, but nor is it increasing.

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Comments (6)
  1. "A peak of $3.73 per gallon is expected in May, due to the usual switch to summer-grade gasoline "

    So, they "claim" that price goes up when we swtich to "winter" blend, now they are also claiming that price goes when we switch back to "summer" blend? Why don't they just come out and say that they will make the price go up whenever they want and you have to pay.

    If this is NOT a good reason to drive a plugin, then what is?
     
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  2. Right on brotha!
     
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  3. Yes- markets are manipulated. Yes- fuel prices are far more of a concern to people who cannot truly afford to go hybrid or electric. Yes- affordable solar/wind and EV solutions are answers to energy shackles, which many of us refer to when addressing cartels and monopolies of any flavor- foreign, foreign-domestic and domestic. The best way to fight this is to do the math and make a personal challenge of it. Bike if you can, avoid unnecessary trips, car pool when possible, shop locally, yadda, yadda..
     
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  4. I'm with you brother but the bigger improvements are already happening for what I would love to see as a mid term goal of less then 5 million barrels/day of gasoline. Consider the following:
    1) Most auto builders recognize fuel efficiency is now a primary concern for new vehicle buyers n have responded with more efficient new models in the last couple years.
    2) New diesel models are coming to push up mpg averages n to further displace gasoline.
    3) Hybrids, plug-in hybrids, and evs are increasing in market share and further displacing gas demand
    4) The fleets of vehicles of that drive many miles such as taxis, government vehicles, delivery vehicles, etc. will be using far more efficient vehicles within the next few years.Y not evs for uspo?
     
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  5. goal: under 5 mil barrels/day of gas by 2020
     
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  6. A year ago, I installed a home solar power system with the thought that it would offset my electric bill. That utilities constantly rise in price is a given. My really bright idea was to add an electric car to the system. I've saved thousands in gas costs already. It's obvious that here in S. Cal. we are captives of the gas companies. Their goal, in my opinion, is gas at $5.00 per gallon. Right now they are conditioning us to get used to $4.00+ a gallon. Bet it's $5.00 by this time next year...
     
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