Summer Gasoline Prices Seen Holding Steady in Relief for Drivers

American drivers may pay about the same prices at the pump this summer, providing a boon for the Biden administration’s efforts to tame inflation.

Author of the article:

Bloomberg News

Lucia Kassai

Published May 07, 2024 • 1 minute read

People pump gas in Austin, Texas. Photo by Brandon Bell /Photographer: Brandon Bell/Getty

(Bloomberg) — American drivers may pay about the same prices at the pump this summer, providing a boon for the Biden administration’s efforts to tame inflation.

Motorists are expected to pay an average $3.68 per gallon from April to September in the US compared with $3.67 last year, the Energy Information Administration said in its Summer Fuels Outlook report. The 0.3% increase comes even as benchmark West Texas Intermediate oil is expected to rise about 9.7% from last year’s levels.

Advertisement 2

This advertisement has not loaded yet, but your article continues below.

THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY

Subscribe now to read the latest news in your city and across Canada.

Exclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.Daily content from Financial Times, the world’s leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.

SUBSCRIBE TO UNLOCK MORE ARTICLES

Subscribe now to read the latest news in your city and across Canada.

Create an account or sign in to continue with your reading experience.

Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.

Sign In or Create an Account

Article content

Flatlining gasoline prices would provide significant help in policymakers’ fight against inflation since the fuel is a major component in the energy category of the Consumer Price Index. Prices at the pump have recently started to fall as fading geopolitical risks in the Middle East weigh on oil prices. Even if crude rises as projected, the end of a heavy refinery maintenance season is bringing more fuelmaking capacity online, potentially helping keep gasoline prices in check.

The energy department expects motorists in the world’s largest gasoline-consuming nation to guzzle 9.11 million barrels a day during the summer. That’s similar to last year and well below levels seen before the pandemic, when summer demand reached 9.5 million barrels a day in 2019.

Other highlights of the report:

Retail diesel prices are expected to fall to $3.93 a gallon this summer, down 4.4% from last yearRefineries aren’t expected to run as hard as they did last year. They are seen operating at 91.3% of capacity, down from 92.4% in the summer of 2023.

Article content

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Financial Post – https://financialpost.com/pmn/business-pmn/summer-gasoline-prices-seen-holding-steady-in-relief-for-drivers