05:53 AM EST, 01/23/2025 (MT Newswires) -- U.S. retail gasoline prices in 2025 are expected to decline by US$0.11/gallon, or about 3%, from 2024 levels, the U.S. Energy Information Administration said in a Wednesday report, citing its latest Short-Term Energy Outlook.

In 2026, the EIA forecast a further decrease of about US$0.18/gallon, or an additional 6%.

The decrease will be driven by lower crude oil prices and falling gasoline consumption in 2026 due to increasing fleet-wide fuel economy. However, decreasing U.S. refinery capacity over the forecast period may offset the downward impact on gasoline prices, the EIA noted.

The EIA expects a small increase in U.S. gasoline consumption and increased net imports of motor gasoline in 2025.

In 2026, gasoline consumption is forecast to decrease from 2025 levels due to rising vehicle fleet efficiency, which reflects an increasing share of electric vehicles in the U.S. passenger vehicle fleet and increasing fuel economy in cars with conventional internal combustion engines, the EIA said.