Gas Likely to Hit $3 a Gallon by Summer

The U.S. Department of Energy projects prices will rise in the coming months because of increased consumption.

Gas pump

Expect to spend more at the pump this spring and summer — and likely through 2011. Light rail, anyone?


Content Tools

A slow but steady growth in U.S. gasoline consumption is expected to drive prices at the pump for regular-grade gasoline above $3 per gallon by spring or summer, according to the Energy Information Administration (EIA) within the U.S. Department of Energy.

The EIA’s latest Short-Term Energy Outlook, released on Dec. 12, 2009, projects that regular-grade gasoline prices will average $2.84 per gallon in 2010, rising to $2.94 per gallon in 2011. Retail prices for diesel fuel will also escalate, averaging $2.98 per gallon in 2010 and $3.14 per gallon in 2011.

Meanwhile, crude oil prices actually fell in Dec. 2009, averaging only $74.50 per barrel, although prices were back up to $79 per barrel by the end of the month. The EIA expects crude oil spot prices to weaken over the next few months before regaining strength, gradually rising to $85 per barrel by the end of 2011.

Reprinted from EERE Network News, a free newsletter from the U.S. Department of Energy.