Loading…
Thursday, December 25, 2014
Current Weather
Loading Current Weather....
Published: Wednesday, 5/9/2012

U.S. lowers estimate for price of gas this summer

ASSOCIATED PRESS

NEW YORK -- Gasoline prices are not likely to set any records this summer, thanks to a recent drop in the price of oil.

The government on Tuesday slashed its forecast for average gas prices to $3.79 a gallon for the summer driving season.

That is down from an initial estimate of $3.95 and below 2008's record average of $3.80.

The Energy Information Administration's revised forecast is encouraging news for the economy.

Some economists blame high pump prices for so-so consumer spending this year. The cost was believed to be a factor in the loss of 35,000 retail jobs in February and March.

Gasoline prices soared 20 percent from January to early April.

A few analysts warned drivers they could pay as much as $5 this summer, eclipsing the 2008 record of $4.11 per gallon.

But the price of benchmark crude oil has dropped about $8 a barrel since early April. Retail gas prices have followed, falling 17 cents since reaching $3.936 on April 5.

"It's almost like a tax cut," said Jared Bernstein, a senior fellow at the Center for Budget and Policy Priorities.

The Energy Information Agency's prediction means motorists will spend about $10.7 billion less on gasoline than anticipated.

Last year, drivers paid an average of $3.71 a gallon from April to September.

The national average for gas is now $3.76 a gallon, according to AAA, Wright Express, and Oil Price Information Service.

That's 20 cents cheaper than a year ago.

In Toledo Tuesday the average price was $3.743, down almost four cents from the day before, according to gasbuddy.com, which can be found at toledoblade.com/gas.



Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. If a comment violates these standards or our privacy statement or visitor's agreement, click the "X" in the upper right corner of the comment box to report abuse. To post comments, you must be a Facebook member. To find out more, please visit the FAQ.

Related stories