The Voice - Student Newspaper

Gas prices expected to remain stable through the summer

By Sergio Vaquera
Reporter, The VOICE

Motorist can probably still remember last summers outrageous gas prices. However, they can rest easy knowing that the price of gas should stay relatively stable this according to the U.S. Energy Information Administration's report in mid-April.

The reason for this is the increase in fuel consumption which was affected by the steep fall in petroleum prices from last year. This in turn is being off set by the weak economy.

Still, consumers should look to pay more than what the current average is. Regular-grade gasoline retail prices are projected to average $2.23 per gallon during the summer; a better deal than last summer's average of $3.81 per gallon. In the later months of summer the average price of gasoline is expected to peak at about $2.30 per gallon.

Diesel fuel is also looking to have more manageable costs with a projected $2.27 compared to the $4.37 per gallon average last summer.

However, these are just projections and can change depending on the consumption. The more that is purchased the greater the prices.

The tax and retail distribution costs are generally stable thus the greatest influence on prices is the change in crude oil prices and wholesale margins. The average price of crude oil is projected to be about $52 per barrel this summer, significantly lower than the $116 per barrel average of last summer.

The wholesale price of gasoline and the average cost of crude oil is expected to stay the same thus leading to more stable prices. This is also the case for diesel flues as the price is foreseen to be lower due to the global weakness in distillate markets.

This should be great new for those of you looking to travel during this summer season.

Please send comments to svaquera@gccvoice.com