The U.S. Energy Department’s Information Administration said on Tuesday, February 12, that it expects regular-trade gasoline to average $3.55 a gallon in 2013 and $3.39 in 2014, up from last month’s estimate of $3.44 and $3.34 respectively.
While the department may not get top marks for forecasting accuracy, that’s lower than last year’s $3.63 average. In Michigan, for example, the average price last Monday was $3.74 per gallon.
This year gasoline demand will average 8.73 million barrels a day, up from 2012’s 8.72 million, while distillate demand, including heating oil and diesel, is estimated at 3.77 million barrels a day down from last month’s 3.8 million projection.
While drivers may be relieved to hear that, on average, they will pay less than they did last year on gas, households that depend primarily on oil for heating will have to spend an average of US$2,459 from October 1 to March 31.
This accounts for an 18 percent increase compared to the same period last year and it is a result of both the 4.5 percent hike in oil prices and the 13 percent consumption increase recorded last month.
While only 6 percent of households in the States depend on oil for heating, the Northeast accounts for 80 percent of that number.
By Andrew Tsaousis
Story References: Detroit News
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