When it comes to summer gas prices, many American consumers are simply used to paying for it at the pump. Summer is synonymous with families packing into their cars for extended road trips and vacations. But while the price of gas has increased across the country recently – specifically in states like Iowa, Nevada and Ohio – analysts are actually expecting a lower than usual average gas price come this summer.
According to a report on Yahoo News, “a combination of increased supply and relatively static demand should reportedly help keep gas prices stable, as the nation enters into the prime, summer driving months.” This combined with
Meanwhile, in a “Short-Term Energy and Summer Fuels Outlook” report, the US Department of Energy is projecting a slight bump in prices from April to May, but then headed down to a more resonable price point by the end of the summer:
“During the April-through-September summer driving season this year, regular gasoline retail prices are forecast to average $3.57/gallon (gal). The projected monthly national average regular retail gasoline price falls from $3.66/gal in May to $3.46/gal in September. EIA expects regular gasoline retail prices to average $3.45/gal in 2014 and $3.37/gal in 2015, compared with $3.51/gal in 2013. The July 2014 New York Harbor reformulated blendstock for oxygenate blending (RBOB) futures contract averaged $2.85/gal for the five trading days ending April 3, 2014. Based on the market value of futures and options contracts for this key petroleum component of gasoline, there is a 3% probability that its price at expiration will exceed $3.35/gal, consistent with a monthly average regular-grade gasoline retail price exceeding $4.00/gal in July 2014.”
This week saw an average increase in gas prices in several states across the United States. According to the Associated Press via Yahoo News, Ohio saw an 8 cents increase in local gas prices as reported by a “survey from auto club AAA, the Oil Price Information Service and WEX Inc.” Las Vegas meanwhile also saw a jump in local gas prices. According to an article on FOX 5 Las Vegas, via GasBuddy.com:
“Gas prices in the Las Vegas area jumped 6.3 cents during the past week, according to GasBuddy.com. The price-tracking website reported the average cost of a gallon of gas was at $3.60 in Las Vegas – a penny more than the national average. Locally, the price was 14.6 cents more than last month, but 2.4 cents lower than last year.”
What do you think? Will gas prices be higher or lower than they are now come summertime?