Please ensure Javascript is enabled for purposes of website accessibility

Pump Prices Predicted to Drop for 2nd Summer in a Row

By Justin Loiseau - Apr 9, 2013 at 3:47PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

EIA estimates retail price per gallon at the pump of $3.63 for the summer, down $0.06 from last year.

Prices at the pump are expected to drop for the second consecutive summer, according to a U.S. Energy Information Administration (EIA) report (link opens in PDF) released today.

After a 34% spike from 2010 to 2011, summer retail gasoline prices bumped down in the summer of 2012 and are expected to drop again this summer. According to EIA's report, drivers can expect an additional $0.06 shaved off this summer's per-gallon cost, putting the average at $3.63, compared to last summer's $3.69 average.

Source: eia.gov. 

The EIA assessment notes lower Brent crude oil prices, non-OPEC supply growth, and increased fuel economy as the main drivers behind the projected drop.

On a regional basis, West Coast pump prices should drop the most, from $4.02 last summer to $3.89 per gallon  this summer. The Midwest and Rocky Mountain regions are expected to receive a $0.09 cut from 2012's pump prices, followed by a $0.04 drop on the East Coast and a $0.02 decrease for the Gulf Coast.

link

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
349%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.