The U.S. Energy Information Administration raised its forecast for gasoline prices at the pump in 2013 and reduced its estimate for demand.

Regular-grade gasoline will average $3.56 a gallon this year, up from last month’s forecast of $3.55, the statistical arm of the Energy Department said in its monthly Short- Term Energy Outlook. Prices in 2012 averaged $3.63 a gallon.

Prices may average $3.39 in 2014, the department estimated, up from $3.38 in last month’s forecast.

Gasoline consumption this year will average 8.69 million barrels a day, down from 8.71 million in last month’s projection. Demand in 2014 may be 8.7 million barrels a day, down from last month’s forecast of 8.71 million.

Distillate demand, including diesel and heating oil, will be 3.79 million barrels a day this year, up from the last month’s outlook of 3.75 million. Consumption in 2014 is estimated to be 3.81 million barrels a day, unchanged from the previous projection of 3.81 million.