Gas prices headed lower
The Energy Department and AAA predict a drop this year, but they don't account for variables like storms or wars.
For perhaps the first time since the fiscal cliff debates began, the government has come up with an item whose price won't increase in 2013: gasoline.
Thanks to high supply and weakened demand, the average price per gallon should fall to 5% to $3.44, according to the Energy Department. That's still well above the dreaded $3-a-gallon mark and the third highest average fuel price ever, but it's 19 cents lower than last year's record $3.63 average.
It's also an average savings of $205 per household in 2013, which theoretically could put $25 billion back into other areas of the economy -- or, you know, into Americans' savings. That's assuming the Middle East doesn't flare up again, the hurricane season doesn't yield another Superstorm Sandy and the nation's refineries stay open and keep running at capacity.
It also ignores the expiration of last year's payroll tax deduction, which increases the Social Security levy from 4% to 6% this year and will cost households making $40,000 to $50,000 an extra $600 in 2013, according to the Tax Policy Center. Also, the Energy Department's recent history with this kind of prognostication has been spotty at best. In 2011, it predicted average gas prices around $3 just before Libya's revolution halted oil production and drove the national average to $3.53. Last year's prediction was $3.45, which also fell more than a little bit outside the mark.
AAA is steering away from the government annual average and, instead, is focusing on upcoming fluctuations in fuel prices. While AAA's average U.S. gas price sits at $3.31 per gallon, the motorist organization predicts that price could go as high as $3.80 this spring before dropping to $3.20 in mid-summer. That would be the lowest average gas price Americans have paid since February 2011, but may be short-lived depending on what hurricane season brings.
Of course, those prices are also still highly contingent upon where drivers live. Right now, drivers in Utah have the lowest gas prices at an average $2.88 a gallon, while New Yorkers are still dealing with Sandy's aftermath as they pay $3.75. One region's year of cheap gas could be another area's fuel crisis.
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fzcleve bull we have plenty of oil nat gas and coal let's use it 5 million jobs energy independence bring our troops back from the middle east makes to much sense fz
YOU LIBS CAN SAY WHAT YOU WANT BUT IT'S OBAMA AND LEFT WING LIBS AGENDA THAT IS
NOT ONLY RISING FUEL PRICES ALSO FOOD ENERGY ETC....LET THE FREE MARKET DECIDE
WHAT ENERGY PEOPLE WANT! GREEN ENERGY ISN'T WORKING IT ISN'T CHEAP AND WHY
SHOULD THE TAX PAYER [MIDDLE CLASS TAXES RAISED] AND POOR PAY FOR THESE RICH
LIBS TO GET THEIR LITTLE SOCIALIST UTOPIA ENERGY AT THE EXPENSE OF THE HARD
WORKING AMERICAN? F THEM! OPEN THE PIPELINE DRILLING AND CUT THE OVER DONE
REGULATIONS OBAMA AND HIS NUTJOB EPA HAS PUT ON CHEAP ENERGY! ALL ENERGY
HAS ISSUES LIKE TOXIC BATTERIES AND LIGHTBULBS! AMERICA WILL BE LIKE ALL THE OTHER GREEN COMPANIES HIGH GAS FOOD PRICES TO PUSH THEIR GREEN AGENDA!
NOTICE OBAMA DIDN'T HAVE ANY PRESS CONFERENCES WHILE HE WAS RUNNING? NOW
Gas should be at about $1.75 to $2.00 a gallon right now. The reason it isnt is because of way too many things to list. People claim it isnt political, but politicians are to blame for most of it.
They can and should write a law that takes oil futures off the market. Trading in futures is keeping the price inflated and making the rich political donors even richer.
Next, allow refineries to add capacity. The New Liberal hates the idea, but the economy is stuck right where it is until we start seeing gas prices where they belong. The EPA is killing this county and costing every person living here thousands of dollars a year. Why do we accept it? We shouldnt.
Now, here is the big one. Use the oil we have here. Drill it, refine it and sell it. If that doesnt kill the market profit grabbers, nothing will. It is hard to shore up an inflated price when there is more of a product than we can use. Import and use domestic. Imagine the price battle we'd see then. It would definately put free market back in oil. Remember how it used to be? It could be like that again. Imagine gas stations lowering their prices to compete with the other stations instead of raising their prices to keep up with other stations.
The biggest scam / rip-off in the history of the world: oil companies get oil from public lands, our oil, then sell it back to us at $4 a gallon or whatever price they feel like that month. They are all nothing more than a bunch of market manipulating Enrons.
pretty much oil prices are going to go up instead of down
All the middle east countries are fast running our of oil to sell to us and as supply drops the price will increase -- think that is covered in fifth year of economy -- econ 510 so most people do not knwo about it.
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[BRIEFING.COM] The stock market is doing pretty much what it was expected to do today in front of the FOMC decision (i.e. nothing). The major indices are little changed as traders wait anxiously for the Fed's latest directive and updated economic projections.
Everyone is waiting to see if the "considerable time" language is maintained in the directive after Wall Street Journal Fed watcher, Jon Hilsenrath, suggested yesterday it could be.
Mr. Hilsenrath's article ... More
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