EIA Lowers Gasoline Price Forecast for Summer 2013

The Energy Information Administration of the U.S. Energy Department lowered its projection for the price of gasoline in the summer of 2013.

According to the monthly Short-Term Energy Outlook of the Energy Department’s statistical arm, gas prices will decline by the summer season this year, relative to the previous year. With the drop in prices, the agency projects summer gasoline prices that are lower by an average of 16 cents compared to the summer of last year. The April forecast of the EIA predicted the prices to average lower by 6 cents per gallon compared to last year.

The agency predicts the price of regular gas to average $3.53 per gallon from April to September. That forecast is lower compared to the April prediction of $3.63 per gallon. The price of diesel will average $3.88 per gallon, a lower forecast than the previous estimate of $3.94.

Drivers in the U.S. will see a break at the pump during the summer as the average price of gasoline is now anticipated to be around $3.53 per gallon, a rate that is lower by 16 cents compared to the summer of last year and is remarkably lower compared to the peak price of $3.78 a gallon that was reached in the latter parts of February, said Adam Sieminski, the administrator of the EIA.

Lower per barrel crude prices will encourage drivers to hit the road, said the agency. The current crude price of Brent, the benchmark used for international oil types, is 7.1 percent lower versus last year, while WTI, the U.S. crude benchmark, has declined 2.2 percent. Regular gas, with a latest average of $3.538 per gallon, is lower by 25.2 cents compared to last year, said the EIA.

By: Chris Termeer