Summer gas prices expected to drop to lowest level in a decade

Gasoline prices in the US are expected to drop to the lowest seasonal level in a decade this summer, according to data gathered by the American Automobile Association (AAA).

The latest AAA Fuel Gauge Report stated:

“Unless there are new regional refinery issues or global crude prices turn markedly higher, drivers can expect to see pump prices continue to slide leading up to the start of the summer driving season,”

The AAA projects that the national average price for a gallon of gas is expected to drop to as low as $2.35 during the summer. This is far lower than what the Energy Information Administration expects, of summer gasoline prices averaging at $2.45 per gallon.

Jim Lardear, director of public and government affairs for AAA Mid-Atlantic, said that there is hope that prices could drop “significantly” in time for “the busy summer driving season”.

Ladear said:

“The overall outlook looks good for drivers, and with any luck we will avoid the types of problems that often lead to higher gas prices at this time of year.”

Adding:

“This spring has been relatively pain free at the pumps for most drivers with a few exception.

”Gas prices in most places are still relatively cheap and we have not seen the national average jump at the same dramatic rates that have been so common during the spring in recent years.”

Gas prices peaked this year-to-date on March 7 at $2.46 per gallon.

However, according to the AAA Fuel Gauge Report, prices for regular unleaded gas dropped for 24 out of the past 30 days.

Experts believe that abundant supplies will cause oil prices to drop further, which in turn would keep gas prices low.

Domestic oil production is roughly 14 percent higher than last year and gasoline supplies are around 6 percent higher than a year ago.


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