The Energy Department’s statistical arm has sharply raised its forecast for U.S. diesel prices next year, warning that tight global supplies and depleted domestic inventories could keep fuel costs elevated well into 2027. The Energy Information Administration now expects retail diesel to average $4.40 a gallon in 2027, up 33 cents, or 8.2%, from its previous forecast of $4.07, according to Axios. The latest projection is also nearly $1 a gallon higher than the EIA’s pre-Iran war forecast of $3.47 for 2027, Axios reported.
The EIA said U.S. distillate fuel inventories are expected to fall below 100 million barrels in October and remain below the five-year low through the first quarter of 2027. The agency’s latest outlook comes as diesel prices have already reached record levels, with the national average hitting $5.94 a gallon Wednesday, according to the Associated Press. Reuters reported that U.S. gasoline prices were averaging about $4.22 a gallon Wednesday, while diesel prices were approaching $6.
