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April 8, 2005
Summer Gasoline Prices Expected to Remain High
by HNN Staff
Washington, D.C. (HNN) – Regular gasoline prices are projected to average $2.28 per gallon during this April through September summer season, 38 cents above the level last summer, according to forecasts released today by the Energy Information Administration (EIA) in the April Short-Term Energy Outlook. Monthly average prices are projected to peak at about $2.35 per gallon in May. Summer diesel fuel prices are expected to average $2.24 per gallon. West Texas Intermediate (WTI) crude oil prices are projected to average 37 cents per gallon above year-ago levels this summer.
High world oil demand, sparked by robust economic growth, is continuing to keep crude oil prices high and to increase competition for gasoline imports. In the United States, additional changes in gasoline specifications and tight refinery capacity can be expected to increase operating costs slightly and limit supply flexibility, adding further pressure on pump prices. Summer motor gasoline demand is projected to average 9.3 million barrels per day, up 1.8 percent over last summer's demand despite higher prices. The higher demand is caused by the increasing number of drivers and vehicles, and increasing miles traveled per vehicle.
Background on the Short-Term Energy Outlook
The Short-Term Energy Outlook (STEO) is published monthly on EIA's Internet Web site to meet the public's demand for timely energy data and projections. The STEO addresses a full range of energy market indicators, including demand, supply and price forecasts for crude oil, petroleum products, natural gas, and electricity. Users can view and download the forecast analysis, tables and charts by going to the EIA Home Page at www.eia.doe.gov and selecting "Short-Term Outlook" from the right menu under Featured Topics. The Internet address for direct access to the Outlook is: http://www.eia.doe.gov/emeu/steo/pub.
The report described in this article was prepared by the Energy Information Administration, the independent statistical and analytical agency within the U.S. Department of Energy. The information contained in the report and the press release should be attributed to the Energy Information Administration and should not be construed as advocating or reflecting any policy position of the Department of Energy or any other organization.
