Lower Prices Expected at the Gas Pump

Drivers are likely to see lower prices at the gas pump this summer compared with last year, thanks to lower crude oil prices, U.S. energy officials said Thursday.

“This year, we don’t see a lot of sticker shock,” said Jay Hakes, chief of the Energy Information Administration.

Last summer, gasoline prices jumped 21 cents a gallon across the country--and even more in California--as crude oil prices surged by $5 a barrel ahead of the summer driving season.

This summer, with more crude oil available to refiners, Hakes said pump prices would probably climb 3 cents to 5 cents from current levels to about $1.31 per gallon for all grades, about 1.5 cents less than last summer’s average.

“I believe motorists this spring will not be seeing the kind of price shocks that they saw last spring,” he told a news conference.

Gasoline prices are expected to peak at $1.34 in June, below last summer’s high of $1.38 in May, according to the EIA, an independent agency within the Energy Department.

“While prices are not low by historic standards, they should be less volatile,” Hakes said.

U.S. motorists, who drive 7.3 billion miles a day, will use 342 million gallons of gasoline every day this year, which is 1.9% more than last year, according to the agency.

Hakes said refinery production and imports should keep up with Americans’ appetite for gasoline without drawing on stocks, which are below normal for this time of year.

U.S. and European refiners are well-positioned to produce a lot of gasoline rapidly, he said, because the mild winter earlier this year depressed oil demand and allowed them to do repair work at their plants well ahead of the driving season.