That summer road trip is likely going to cost you more this year.
Gas prices are expected to rise to to $2.46 a gallon, on average, during the summer—23 cents higher than last summer’s average, the U.S. Energy Information Agency estimates.
That means the average household would spend about $200 more on gasoline this year than last year, if the forecast comes true.
The EIA blames the rise on higher prices for crude oil.
Courtesy: EIA
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Gas prices have already hit their highest point of the year so far, at an average $2.41 per gallon, CBS MoneyWatch reported.
But the EIA cautions even if its predictions come true for higher gas prices, it’s 2017 forecast would still be nearly 70 cents per gallon less than the five-year average.
In fact, gasoline in 2016 cost the lowest amount per gallon since 2004, an EIA regional analysis showed.
Courtesy: EIA
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Gas prices often increase in spring and summer, tracking the rise in demand.
In addition, summer-grade gasoline is “more costly to manufacture,” an EIA report found, so “wholesale gasoline margins typically increase during summer months.”
Gas consumption this summer is expected to be 0.3% more than last summer, fueled by a projected 1.4% rise in summer highway travel, the report states.
Courtesy: EIA
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