July 1 (Bloomberg) -- U.S. retail gasoline prices have peaked and won’t go higher during this year’s summer driving season, AAA said.

The average price for regular gasoline won’t rise above the June 21 high of $2.693 a gallon, Geoff Sundstrom, a spokesman for AAA said today in an telephone interview. AAA, the nation’s biggest motoring organization, estimated after the Memorial Day holiday in May that summer prices would reach $2.75 a gallon.

“When you see consumer confidence sliding again and no improvement on the job front, barring any major geopolitical or catastrophic event like a hurricane, it looks like prices have topped,” Sundstrom said.

Sundstrom added that average prices this summer may fall as low as $2.50 a gallon.

The average price has fallen 2.3 percent since June 21 as supplies of the motor fuel have risen and demand has declined. The July 4 holiday weekend is traditionally the high point for fuel demand, and AAA estimates that auto trips will decline 2.6 percent during the period from a year ago.

Average pump prices for regular gasoline fell 0.3 cent to $2.63 a gallon, AAA said today on its Web site. That’s the ninth consecutive decline and the lowest price since June 9.

Prices for regular gasoline rose to a record $4.114 a gallon on July 17, 2008.

To contact the reporter on this story: Barbara Powell in Dallas at Bpowell4@bloomberg.net.

Last Updated: July 1, 2009 15:49 EDT