More is 20% Less
Source: U.S. Energy Information Administration (EIA), Short-Term Energy Outlook April 2017 Note: Retail margins include taxes.
Higher fuel prices not seen limiting summer driving
The year's off to a great start for Carolina's beach communities.
Easter, the first big weekend of 2017 arrived with bountiful tourists and a forecast of more of the same despite higher gasoline prices.
As the tourists were arriving, the EIA broke out the summer driving numbers from its April outlook, forecasting a 1.4% increase in 2017 summer highway travel despite a 10% increase in gasoline prices from 2016.
U.S. drivers will pay an average of $2.46 per gallon this summer for regular gasoline, according to forecasts in EIA’s Short-Term Energy Outlook. Gasoline prices from April through September are expected to be 23 cents/gal higher than the average price last summer, but this price is still nearly 70 cents/gal below the average for the previous five summers.
The gasoline price increase this summer primarily reflects slightly higher forecast crude oil prices, the EIA explained.
Projected motor gasoline consumption for summer 2017 is expected to average 9.5 million barrels per day, slightly more --about 20,000 barrels daily, or 0.3% -- than the record set in the summer of 2016.
Regional differences in retail gasoline prices can be significant, the EIA pointed out, forecasting average summer prices will range from a low of $2.21/gallon on the Gulf Coast to $2.87 on the West Coast.
On Monday (April 17) the average U.S. gasoline price was $2.436 a gallon, up 29.9 cents from a year earlier, the EIA reported in the Gasoline and Diesel Fuel Update. Prices ranged from $2.241 a gallon on the Gulf Coast to $2.652 on the West Coast. Here in the Lower Atlantic – the states of Virginia to Florida – the average was $2.320, up 29.7 cents from a year ago.