The report projects the U.S.’ average diesel price to fall to $3.85 this year, a 7-cent drop from 2013’s average of $3.92 and a 12-cent drop from 2012’s $3.97.
The EIA also predicts the price to fall another 7 cents in 2015 to $3.78 a gallon.
Both of those prices are upward revisions from last month’s report, which forecast the price to fall to $3.83 in 2014 and to $3.73 in 2015.
This is the fifth month in a row EIA has upwardly revised its 2014 projection, coming up 12 cents from November’s forecast price of $3.73 for 2014.
The continued projection of diesel price declines stems from a potential growth in supply that will outpace growth for demand, EIA says.