Summer nightmare: $3-a-gallon gas
The Energy Department sees gasoline prices rising as the economy recovers.
You'll be paying $3 a gallon or more for gasoline this summer. If you're a diesel user, look for $2.97, the department's Energy Information Administration says.
Your electricity bill is likely to move higher, but you may get a break on natural gas.
The projections are contained in the EIA's "Short-Term Energy and Summer Fuels Outlook."
The outlook, released today, says Americans will pay an average $2.92 a gallon for gasoline during the summer driving season (technically between April 1 and Sept. 30). But at the peak of the season, prices will top $3 a gallon.
Gasoline will average $2.84 a gallon for 2010, up 21% from the $2.35 average of 2009. In 2011, the average will move up to $2.96.
The reason: Crude oil will jump. The EIA is forecasting an average $85 a barrel by the fourth quarter of 2011.
The estimate looks way too conservative. AAA's Daily Fuel Gauge Report estimated the national retail price of gasoline at $2.83 today. And crude oil passed $86 a barrel on Monday; there's talk that $90 is within reach.
If that happens, $3-a-gallon gasoline and $100-a-barrel crude are very nearly certain. That may cause problems for airlines and others.
And you will hear a lot of grumbling from consumers.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages hover just below their highs with one hour remaining in the final session of the week.
Tomorrow, most global markets, including the U.S., will be closed for Good Friday, while Japan's Nikkei and China's Shanghai Composite will remain open. On Monday, the New York Stock Exchange will open at its regular time, while markets across Europe and Hong Kong's Hang Seng will remain closed for Easter Monday. Nasdaq +17.71 at 4103.94... NYSE Adv/Dec ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'