Nickel Rise in Gasoline Prices Forecast for Summer

Motorists will be paying about a nickel more for gasoline this summer than last and supplies may be tighter than usual, the Energy Department said Friday.

This summer’s gasoline market will have “more uncertainty and complexity” than usual, in part because of the introduction this year of cleaner-burning reformulated fuel, said the department’s Energy Information Administration.

The agency predicted that gasoline prices would average $1.24 a gallon nationwide through September, five cents higher than last summer. Less than half of the increase was attributed to the introduction of reformulated gasoline in areas with serious smog problems.

The higher prices are not expected to dampen demand, however.

“Buoyed by increases in real personal disposal income, highway travel activity is projected to be 2.8% higher than last year,” said the agency in a summer energy outlook report.

The study predicted that gasoline demand would approach 8 million barrels a day in the July-September period, a 17-year high, because of increased travel.

“Along with record demand, low preseason inventories, high refinery utilization and reduced supply flexibility . . . add uncertainties to the summer (gasoline) outlook,” said the administration, which is the statistical agency of the Energy Department.