Drivers will see the lowest summer gasoline prices in about 6 years, according to the Energy Department. The national average price is forecast to fall 32% from a year ago to $2.45 a gallon between April and September, the period when Americans do most of their driving. That would mark the lowest seasonal average since 2009. For the year, the department’s Energy Information Administration expects gasoline to average $2.40 a gallon, down from $3.36 a year prior.
The lower prices are a result of world oil supplies growing faster than demand because of higher production in North America and elsewhere. That dynamic has been depressing the price of crude oil. But, the Energy Department warned that the forecast could substantially change if oil-related sanctions against Iran are lifted as part of ongoing negotiations. That country is believed to hold at least 30 million gallons of oil in storage.
The price of Brent crude, a benchmark used to price oil used by many U. S. refineries and the most important factor in gasoline prices, is forecast to fall 40% this year. U.S. drivers are expected to consume slightly more gasoline, a 1.6% increase, during the summer. But gasoline expenditures by household are expected to be the lowest since 2004, according to the EIA, with people spending about $700 less on gasoline in 2015.
The average price of gasoline in the U.S. this week was $2.38 a gallon, down 33% from last year, according to AAA and GasBuddy.com.
