National average motor gasoline and diesel prices in 2020 were the lowest since 2016: $2.17/gallon (gal) for gasoline and $2.55/gal for diesel, according to the U.S. Energy Information Administration’s (EIA) Gasoline and Diesel Fuel Update. EIA expects that economic recovery and greater demand for transportation fuels will lead to higher prices for gasoline and diesel in 2021 and 2022. In its latest Short-Term Energy Outlook, EIA expects regular gasoline retail prices to average $2.42/gal in 2021 and $2.43/gal in 2022 and on-highway diesel prices to average $2.71/gal in 2021 and $2.74/gal in 2022.
Demand for transportation fuels fell in 2020 primarily because of responses to the COVID-19 pandemic. As the vaccines for COVID-19 become more widely distributed in 2021, EIA expects the effects of the pandemic on liquids fuels consumption to moderate.