Gas Prices Projected to Average $3.95 for April-Sept. Season

Prices for regular gasoline are forecast to average about $3.95 per gallon during the April-September summer driving season, peaking in May at a monthly average price of $4.01 per gallon, according to the U.S. Energy Information Administration.
Regular gas prices at the pump are expected to average $3.81 per gallon in 2012 and $3.73 per gallon in 2013, compared with $3.53 per gallon in 2011, the EIA said.
If the projection of $3.95 for a gallon of regular gasoline holds up, it would represent a 6.3 percent increase or 24 cents, from last year’s April-September driving season, according to the agency’s monthly Short-Term Energy Outlook. That’s an increase from last month’s peak season prediction of a $3.295 average.
Based on the market value of June 2012 futures and options contracts on the wholesale grade of gasoline, there is a 40 percent probability that its price at expiration will exceed $3.35 per gallon, the EIA said. That’s consistent with a monthly average regular-grade gasoline retail price exceeding $4.00 per gallon in June.
Higher gas prices are expected to reduce gasoline consumption by 0.5 percent this summer, compared with summer 2011, according to the forecast.

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