Average Price At Pump For Summer: $3.86 Says Energy Information Administration

The U.S. Energy Information Administration (EIA) reported regular-grade gasoline retail prices, which averaged $2.76 per gallon last summer, are projected to increase to $3.86 per gallon during the 2011 driving season. According to a report released on April 12, the EIA expects the monthly average gasoline price to peak at about $3.91 per gallon by mid-summer.

Diesel fuel prices are projected to average $4.09 per gallon this summer. Monthly average prices in some areas can exceed the national average price by 25 cents per gallon or more, a common variance which occurs across different regions.

The EIA said the gasoline and diesel price changes are driven by changes to crude oil prices and wholesale margins. Higher acquisition costs are, in part, influenced by continuing instability and regime changes in Arab nations. The EIA projects crude oil costs of $112 per barrel, which averages to around $2.67 per gallon. This is in contrast to last year's prices with an average of only $75 per barrel during the summer, only $1.78 per gallon.

The cost of oil is not expected to drop if current movements within the Organization Of The Petroleum Exporting Countries (OPEC) are an indication. Even though OPEC is worried about the recent surge in global oil prices and its potential impact on the world economy, oil officials on April 18 said the governing body feels the market is oversupplied, suggesting output will not be increased at its June meeting.

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