Study: Gas prices will be 40% higher than last summer
The federal government is cautioning motorists to prepare for sticker shock at the pump.
This post comes from Ruth Mantell at partner site MarketWatch.
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Retail prices for a gallon of regular-grade gasoline will average $3.86 from April through September, up from $2.76 for the comparable period last year, said the Energy Information Administration, the statistics arm of the U.S. Department of Energy. Post continues after video.
The national price for gasoline may average $3.86 a gallon in the driving season, the EIA says.
In some areas, monthly average prices could top the national average by at least 25 cents a gallon.
"The continuing economic recovery tends to boost gasoline and diesel fuel consumption, while the effect of higher retail prices tends to dampen it," according to EIA. "These counterbalancing forces are expected to be prominent features of the summer driving season."
According to AAA's daily fuel-gauge report, the national average price for a gallon of regular gasoline is about $3.79, up about 33% from $2.86 a year earlier.
The average U.S. household's vehicle fueling costs will rise about $825 from last year's level, hitting $3,360 in 2011, the EIA said.
The government also expects refiner acquisition costs of crude oil to average $112.50 a barrel this summer, up about 50% from the prior year.
Meanwhile, wholesale gasoline margins -- the difference between the wholesale price of gas and the refiner acquisition cost of crude -- are forecast to average 53 cents a gallon this summer, up 47% from last year.
The catalyst for the increase, according to EIA, will be "continuing strength in worldwide liquid fuels consumption."
Read more from MarketWatch and MSN Money:
- Gas prices around the world
- Drive smarter and get better gas mileage
- What if gas cost $10 a gallon?
- Crude oil edges toward $108 a barrel
- The 10 best cities for commuters
- Consumers may be too down on jobs
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VIDEO ON MSN MONEY
When gas is $4.00gal all people can afford is gas and food ... and ALL other spending ceases ..
No more new cars, or trips to the mall .. and then all HELL breaks loose ... no consumer demand
equals a slow down in production which impacts shipping and retail employment and it's all downhill from there ... We desperately need to STABILIZE the price of gas IMMEDIATELY ...!! or face the same consequences as we did in 2008 ...
The more money we keep spending at the pump, the less we spend on everything else.... duh!! Not rocket science... recession is worse than ever and will continue to decline. When will the govt get it and fix things instead of continuing to put badaids on the cancer of GREED upon this country? I don't spend any money on anything.... Prices for everything keep going up. I'm about to just walk away from my over priced house, high property taxes, etc. and go live with multiple families.... we're tired of paying for the rich and the poor....... not to mention the people who aren't paying anything... Not gonna do it anymore..... They can shove it!!! We're sick of it!!
This is how they get the word to the oil companies/gas companies how much it's okay to charge for gas. Since Goldman Sachs is running/owning the government, this is probably their decision. That's how they set their profit for the investment they made in paper oil. Thanks to Goldman Sachs, and to let them know how much I appreciate them stealing every penny they can from those of us that aren't rich, i.e. 98% of the population, I'm going to buy absolutely nothing I don't absolutely need. Instead I'll be paying off all my debt. Then the financial companies can kiss something while trying to get me to finance anything ever again.
Greed made you big, it can also destroy you.
The majority of ppl in this country dont have the balls to stand up to the govt or the corporations responible for this ****. Until we come together and start forcing
change nothing will ever happen.
Ah yes, here we go again. I love this country, but it's time to start packing. Government has failed, the deficit and energy prices are out of control, and corporate greed is picking up steam.
You would all be amazed how many Americans have sold everything, cashed out, closed their accounts and have moved off shore. Costa Rica, Southern Mexico, Virgin Islands, yes, enough is enough.
If I was close to retiring, I'd be gone too. I'm tired, and just sick of it all.
Freedom is looking worse by the day. Freedom to stay home, freedom to not be able to afford good food, freedom to not be able to find a decent paying job, freedom to not be able to have affordable healthcare, freedom to enjoy crummy customer service everywhere, freedom to purchase more and more poorly made chinese junk, and freedom to have no real tax breaks for the working poor.
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