Falling Oil May Cut U.S. Summer Gasoline Price 25 Cents a Gallon, EIA Says

Tumbling crude oil might reduce U.S. summer gasoline prices by 25 cents a gallon, the Energy Information Administration said today.

“If you asked us for our projection of summer gasoline prices next month, I know it will be lower than what we published in the May outlook,” Howard Gruenspecht, EIA’s deputy administrator, said in Washington today. “You might drop 25 cents a gallon off of that price,” he said.

The EIA’s May 11 Short-Term Energy Outlook predicted gasoline to average $2.94 a gallon during the U.S. April-to- September summer driving season. That outlook assumed average crude oil prices of $84 a barrel for the rest of the year. Oil fell $1.91 today, or 2.7 percent, to $68.30 at 12:42 p.m. on the New York Mercantile Exchange. Oil is down 21 percent this month.

For Related News and Information:

To contact the reporter on this story: Simon Lomax in Washington at slomax@bloomberg.net.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.