The US Energy Information Administration (EIA) released its updated Short-Term Energy Outlook today, and the good news for drivers is that the forecast for gasoline prices for the Spring and Summer has been lowered from a previous estimate of $3.95/gallon to $3.79/gallon. According to today’s reading at the AAA fuel gauge report, regular gasoline costs $3.763/gallon, below the EIA’s estimate for the average summer price.
Because the current price is already below the forecast average, gasoline prices should rise at some point between now and September to even things out. The EIA also noted that given the current futures price on reformulated blendstock for oxygenate blending (RBOB), there is a 22% chance that pump prices will exceed $4/gallon in September.
Our takeaway: enjoy the lower prices while they last. By summer’s end, we’ll be paying considerably more.