EIA Sees Gasoline Hitting $3 per Gallon by Summer
January 13, 2010
A slow but steady growth in U.S. gasoline consumption is expected to drive prices at the pump for regular-grade gasoline above $3 per gallon by spring or summer, according to DOE's Energy Information Administration (EIA). The EIA's latest "Short-Term Energy Outlook," released on December 12, projects that regular-grade gasoline prices will average $2.84 per gallon in 2010, rising to $2.94 per gallon in 2011. Retail prices for diesel fuel will also escalate, averaging $2.98 per gallon in 2010 and $3.14 per gallon in 2011. Meanwhile, crude oil prices actually fell in December 2009, averaging only $74.50 per barrel, although prices were back up to $79 per barrel by the end of the month. The EIA expects crude oil spot prices to weaken over the next few months before regaining strength, gradually rising to $85 per barrel by the end of 2011. See the EIA's "Short-Term Energy Outlook."