DOE Raises Cost Estimates for Fuel, Crude Oil

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asoline prices this summer will average about $2.71 a gallon, while diesel fuel is projected to average $2.70 this year, the Energy Information Administration said Tuesday.

Following the report, American Trucking Associations revised upward the trucking industry’s 2006 fuel costs, projecting motor carriers will spend $98.3 billion on fuel this year — $10.6 billion over last year.

ATA had said two weeks ago that the fuel costs to trucking this year would be $94.3 billion, up from an $87.7 billion forecast in December. (Click here for previous coverage.)

The gasoline forecast is 34 cents over last summer’s average and up 9 cents from EIA’s previous outlook. For the full year, gasoline prices will average $2.57, EIA said in its monthly short-term energy forecast.

The agency, which is part of the Energy Department, did not give a projection for summer diesel prices.

Absent new hurricanes and related damage, fuel prices this fall will be below last year’s records, set after Hurricanes Katrina and Rita reduced U.S. refining capability, the report said.

Gasoline’s record of $3.069 was set last Sept. 5, while diesel’s record of $3.157 was set Oct. 24.

Crude oil is projected to average $68 a barrel in both 2006 and 2007, up substantially from EIA’s April forecast of $65 this year and $61 next year.