Motorists in the US are likely to enjoy significantly lower gasoline prices this summer, according to the EIA. The EIA projects prices across the country will average about $2.45/gal, which is $1.14/gal less than the 2014 summer average of $3.59/gal during the summer months, which the EIA defines as April through September.
The EIA notes that fuel prices in different regions can vary significantly, with some of the lowest prices this summer likely to be seen in the Gulf Coast region, where the average price is projected to be $2.25/gal. The highest prices are likely to be found on the West Coast, where the average price is projected to be $2.82/gal.
Based on EIA projections for all of 2015, the national average for regular grade gasoline will be about $2.40/gal, saving the average household in the country about $700 in annual gasoline costs, compared with 2014.
The drop in gasoline prices is attributed to lower crude oil prices, which have fallen from a summer average price of $106/bbl for the international benchmark, Brent crude, to this summer’s projected average of $58/bbl.
Crude oil prices began falling last summer when global supply moved too far ahead of demand. The erosion in prices accelerated last November, when the Organization of the Petroleum Exporting Countries refused to cut production rates.