Jan 17 (Reuters) - Retail gasoline prices in the U.S. could fall this year due to an increase in inventories and refining capacity, while reduced consumption could bring them further lower in 2025, the Energy Information Administration (EIA) said on Wednesday.
Fuel stocks have risen since mid-November last year, with refiners adding over 10 million barrels of gasoline to storage, leading to prices falling by nearly 20 cents each in November and December.
Crude futures lost over 10% in 2023, with Brent averaging $82.17 a barrel and U.S. West Texas Intermediate crude averaging at $72.93.
U.S. gasoline prices are expected to average around $3.40 a gallon in 2024 and $3.20 in 2025, compared with around $3.50 in 2023, according to the EIA's Short Term Energy Outlook report.
The EIA, however, sees diesel consumption likely to increase from last year in both 2024 and 2025, expecting it to grow by 1.3%, or 50,000 barrels a day, this year due to continued economic growth.
"In both years, we expect slowing but consistent economic growth. Flat or decreasing gasoline consumption despite economic growth is relatively uncommon. Since 1990, gasoline consumption has declined amid positive economic growth in only two years (2010 and 2012)," the report added.
(Reporting by Seher Dareen in Bengaluru; Editing by Krishna Chandra Eluri)
