GAITHERSBURG, Md. -- The summer of 2015 will likely see the lowest gasoline prices in more than a decade.
In its latest Short-Term Energy Outlook, the Energy Information Administration (EIA) forecast shows regular gasoline retail prices averaging $2.45 per gallon for the April-to-September 2015 summer driving season. This compares to a national average of $3.59 per gallon for this same time period in 2014.
This would save the average U.S. household about $700 in 2015 versus 2014, EIA estimates, with annual motor fuel spending set to drop to its lowest level since 2004.
On a regional basis, the Gulf Coast would see the lowest summer average retail gasoline price at $2.25 per gallon, with the East Coast, Midwest and Rocky Mountain regions all at $2.41 per gallon. EIA forecasts a West Coast summer average of $2.82 per gallon.
The agency projects summer 2015 retail diesel prices to average out at $2.77 per gallon nationally, down $1.12 per gallon from summer 2014.
EIA’s estimates for summer 2015 include:
- Brent crude oil spot prices and retail gasoline and diesel prices averaging $1.10 to $1.15 per gallon lower than in summer 2014.
- Gasoline consumption growing 1.6% and average retail prices 32% lower versus summer 2014, with increasing highway travel driven by improving employment trends and income growth. EIA forecasts gasoline consumption to average 0.14 million barrels per day higher in summer 2015 versus summer 2014.
- Gasoline inventories hitting higher at the beginning of the summer driving season, with production at refineries and imports growing to satisfy increased consumption.
Click here to view the EIA's latest Short-Term Energy Outlook.
Meanwhile, GasBuddy, Brooklyn Park, Minn., has moved its projected national retail average for gasoline this summer down to $2.35 per gallon, which would be the lowest summer average since 2005.
Its previous summer driving season forecast was $2.79 per gallon for the time frame of Memorial Day through Labor Day.
“The latest data from the EIA showed the largest week-to-week buildup of crude oil (10.9 million barrels) since March 2001 and that underscores the downward pressure on fuel prices,” said Patrick DeHaan, GasBuddy senior petroleum analyst. “So we’re confident in our projection; that the summer of 2015 will see the national average come in at a seasonal level we haven’t approached since 2005.”
Click here to view the GasBuddy report.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.