This year is set to be another volatile one for gasoline, with higher pump prices likely in the next several weeks, but consumers may be left smiling in the end.
MarketWatch reported that the average U.S. price for regular gasoline fell in 2013 from the year before, and experts predict that prices are likely to fall again this year.
“Fundamentals for gasoline are improving for the U.S. consumer, with retail prices to gradually decline this year from 2013,” said Brian Milne, energy editor and product manager at Schneider Electric.
The price per gallon for regular retail gasoline averaged $3.505 in 2013, down from $3.618 in 2012, according to the Energy Information Administration. The government predicts further declines to averages of $3.46 this year and $3.39 for 2015.
Primary reasons for the shift to lower fuel prices include “less demand amid greater vehicle efficiency and a behavioral change in the U.S. consumer, and a revival in U.S. crude production, with output now at a 25-year high and still climbing,” said Milne. “Higher crude output is by far the leading catalyst for the lower trend in gasoline prices.”
For the full report click here.