Automotive Fleet
MenuMENU
SearchSEARCH

Average Diesel, Gasoline Costs Expected to Remain Low

A new fuel price forecast from the U.S. Energy Department shows little change from expectations a month ago for the price of diesel, but the outlook for gasoline has moved a little higher.

by Staff
April 12, 2016
Average Diesel, Gasoline Costs Expected to Remain Low

 

3 min to read


A new fuel price forecast from the U.S. Energy Department shows little change from expectations a month ago for the price of diesel, but the outlook for gasoline has moved a little higher.

The latest Short Term Energy Outlook, released Tuesday, calls for on-highway diesel retail prices to average $2.11 per gallon during the summer driving season, down from an average of $2.74 last summer. The department defines the summer driving season as April through September.

Ad Loading...

Diesel prices are expected to increase only slightly as 2016 moves forward, hitting an average of $2.15 per gallon in the final quarter of the year. The actual average for the first quarter of the year was $2.07 per gallon. For all of 2016 the price is expected to average $2.11 per gallon, down 1 cent from last month’s forecast. It is forecast to average $2.33 per gallon in 2017, up only a penny from March’s projection.

The department expects the retail price of regular-grade gasoline to average $2.04 per gallon this summer, down from an average of $2.63 per gallon last summer. If this happens, this would mark the lowest summer average since 2004.

Regular-grade gasoline is expected to average $2.07 per gallon in the second quarter, up 4.8% from last month’s forecast, following an actual first quarter average of $1.88 per gallon. It is expected to fall to $1.79 per gallon in the final quarter of 2016, unchanged from the previous projection.

For all of 2016, regular-grade gasoline is forecast to average $1.94 per gallon. That's down from $2.43 in 2015, but it is 2.4% greater than the expectation a month ago. The 2017 price is expected to average $2, up 1.3% from the previous forecast.

According to the department, if the 2016 gasoline price forecast is met, it would save the average U.S. household about $350 compared with 2015, with annual average motor fuel expenditures at the lowest level in 12 years.

Ad Loading...

Prices for both domestic and imported crude oil are expected to be only slightly higher for all of this year. West Texas Intermediate is forecast to average $34.60 this year and $40.58 next year, compared to the 2015 average of $48.67 and a 2014 average of 93.17. Prices for Brent crude, which are usually a few dollars more, are projected to be nearly the same as WTI this year and next.

Helping to keep oil prices down is U.S. consumption of distillate fuel, which includes diesel fuel and heating oil. Use of these fuels fell by 60,000 barrel per day, or 1.5%, in 2015, and it's expected to fall by an additional 70,000 barrels per day, or 1.8%, in 2016. Falling distillate consumption in 2016 is the result of warm winter temperatures, lower rates of oil and natural gas drilling activity, and falling coal production that has reduced diesel use in rail shipments of coal, according to the department. It expects stronger economic growth in 2017 will contribute to distillate fuel consumption growth of 140,000 barrels per day, or 3.5%.

Also keeping a lid on oil prices and consequently fuel prices has been the continuing build in crude inventories, with the rate expected to fall in 2017 to a fraction of what is expected for all of this year.

More Fuel

Graphic showing U.S. gas prices April 2026 with line chart near $4.04 per gallon and regional bars: West Coast highest at $5.41, others around $3.68–$4.02, indicating rising fuel costs.
Fuelby Faith HowellApril 29, 2026

April Fuel Update: Prices Climb Above $4 as Spring Surge Accelerates

National average jumps to $4.04 per gallon, up sharply from last year, with West Coast prices topping $5 and further increases expected amid rising oil tensions.

Read More →
Graphic reading “Fuel-Saving Strategies” with fuel pump and droplet icons, representing fleet management tips on policy, in-network fueling, and maintenance to reduce fuel costs.
Fuelby Faith HowellApril 27, 2026

Tips from Fleet Managers on Saving Fuel Costs

Fleet leaders share practical strategies to reduce fuel spend through smarter policy, routing, and driver guidance.

Read More →
Graphic showing U.S. average gas prices for March 2026 with a line chart and regional breakdown, highlighting rising prices and highest costs on the West Coast above $5 per gallon.
Fuelby Faith HowellMarch 31, 2026

March Fuel Update: Prices Settle With a $4 Average

Fuel prices significantly slowed this week, but a $4 national average is still expected.

Read More →
Ad Loading...
Two men seated at a table during an interview about fleet fuel strategy, with on-screen text reading “AWP Safety Bob Adamski Senior Director of Fleet.”
Fuelby Chris BrownMarch 20, 2026

Bob Adamsky on Fuel Volatility: “Don’t Panic — Have a Plan”

With oil prices rising again, AWP Safety’s fleet manager shares how to respond to rising fuel costs and how the right strategy can turn fuel spikes into cost-saving opportunities.

Read More →
gas pump dispensing money on Middle East map
Fuelby Chris BrownMarch 13, 2026

Oil Market Turbulence Is Complicating Fleet Cost Planning

Rapid swings in crude oil prices driven by the conflict in the Middle East could create longer-term cost pressures for fleets, affecting fuel prices, supply chains, and vehicle strategy, says NTEA’s Andrew Wrobel.

Read More →
SponsoredMarch 1, 2026

Artificial Intelligence in Field Service: North America

48% of field service leaders are investing in AI to manage customer communication and self-service. Get the latest on how fleets are using AI and thinking about the future.

Read More →
Ad Loading...
A chart with EIA data shows an increase in U.S gas prices. Next to it, a chart breaks down the prices by region.
Fuelby Faith HowellFebruary 25, 2026

February Fuel Update: Prices Inch Higher for Third Week in a Row

The final February fuel update reveals prices continuing to inch higher for the third week in a row.

Read More →
A blue background has two fuel pumps overlaying it with text on the left side.
Fuelby Faith HowellFebruary 10, 2026

The 2026 Fuel Economy Guide: Updated Cost and Efficiency Benchmarks for Fleets

Fleet managers can use the DOE’s 2026 Fuel Economy Guide to benchmark MPG across powertrain types using side-by-side vehicle ratings and compare new model-year options.

Read More →
A chart with EIA data shows an increase in U.S gas prices. Next to it, a chart breaks down the prices by region.
Fuelby Faith HowellJanuary 28, 2026

January Fuel Update: Prices Hit Highest Level Since Summer

The national average for fuel prices has officially risen to its highest point since the summer.

Read More →
Ad Loading...
A chart with EIA data shows a decrease in U.S gas prices. Next to it, a chart breaks down the prices by region.
Fuelby Faith HowellDecember 23, 2025

Christmas Comes Early at the Pump: Gas Averages $2.79 Nationwide

The nation's fuel price average continues to decline, with current Christmas numbers the lowest since 2020.

Read More →