The US Department of Energy has raised its forecasts for gasoline and diesel prices in the country for 2026-2027.
According to Report, the revisions were included in the latest report from the Energy Information Administration (EIA).
The forecast for diesel prices in 2026 was raised from $5.07 to $5.19 per gallon (3.78 liters), while the 2027 forecast was increased from $4.40 to $4.49 per gallon.
The EIA also raised its gasoline price forecast for this year from $3.84 to $3.91 per gallon, while the 2027 estimate was revised up from $3.35 to $3.56 per gallon.
The agency also said US distillate inventories, which mainly include diesel and heating oil, are expected to be 18% lower in the third quarter of this year than at the beginning of the year, falling to 104.2 million barrels from 128.2 million barrels.
Inventories are expected to begin recovering in the fourth quarter, reaching 113.3 million barrels, and rise further to 122.1 million barrels by the end of 2027.
The EIA noted that distillate inventories on the US East Coast were 32% below the five-year average in September and are expected to remain 10-30% below average throughout 2027.
The US Department of Energy expects inventories to recover somewhat in the fourth quarter of 2026 before falling to a low of 22.6 million barrels in April 2027, which would be 21% below the 2021-2025 average.