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- 05 Dec
US EIA predicts continued decrease in fuels demand
In their Annual Energy Outlook 2013 Reference case released today, the US Energy Information Administration predicted the demand for motor fuels will continue to decline next year and beyond through 2040. In other words, the size of the fuel volume pie is going to continue to shrink, impacting all those in the fuel price management industry for the foreseeable future.
The US EIA cites as a root cause the new vehicle fuel economy requirement that increases vehicle efficiency from 32.6 miles per gallon in 2011 to 47.3 miles per gallon in 2025. The US EIA projects this vehicle efficiency requirement will reduce gasoline use in 2025 by .5 million bpd compared to 2012.
The report also projects that diesel fuel consumption will be somewhat offset by the use of liquid natural gas in heavy-duty vehicles.
From a fuel price management perspective, this highlights the ongoing competitive nature of the retail fuels business as c-stores and grocery chains continue to fight for an ever shrinking total fuels volume market. Only those companies with the most efficient fuel pricing software will be successful in such a highly competitive environment.
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