No Spike Predicted for Summer Gas Prices

Families planning a summer road trip may be relieved to learn that they will not be paying more at the pump than they did last year, according to forecasts from the U.S. Energy Information Administration (EIA). The projected gas price this summer is $3.57 per gallon, almost the same as the $3.58 average per gallon price last summer.

The above graph shows actual prices from 2011 to 2013 and the projected price for 2014. The monthly retail price of gas can be analyzed by looking at the price components:

• The crude oil price, shown in blue, typically accounts for 2/3 the price of gasoline.
• The wholesale gasoline margin over crude, shown in brown, includes the cost of refining crude oil to produce gasoline.
• The retail gasoline margin over wholesale, shown in yellow, includes the cost of supplying gasoline to retail customers and includes state and federal taxes.

While $3.57 is a national average, drivers on the East Coast can expect to pay slightly less, at $3.53 per gallon.