<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=192888919167017&amp;ev=PageView&amp;noscript=1">
Friday,  April 26 , 2024

Linkedin Pinterest
News / Business

Drivers may get a break at the pump this summer

By Rob Nikolewski, The San Diego Union-Tribune
Published: April 17, 2016, 5:23am

SAN DIEGO — Drivers across the nation may pay less than they have in years at the pump this summer and that goes for motorists in California, which consistently ranks as the most expensive place in the continental United States to gas up.

“It looks like, optimistically, we may get the lowest prices since 2005 in San Diego and statewide but it’s probably more likely the average will be similar to what we had in 2009,” said Marie Montgomery Nordhues, spokeswoman for the Automobile Club of Southern California.

Nationally, the story is similar.

“U.S. drivers are expected to pay the cheapest summer gasoline prices in 12 years, as low crude oil prices mean more savings at the pump,” U.S. Energy Information Administration administrator Adam Sieminski said in a statement as the agency came out with its summer fuels forecast Tuesday.

With the U.S. starting the spring and summer driving season with gasoline inventories nearly 15 million barrels higher than last year, EIA estimated that for all of 2016, the average household will save about $350 on gasoline compared to last year.

The national average is $2.06 per gallon, the lowest for this time of year since 2009.

California’s gas price, typically the highest in the continental U.S., is now $2.77, according to the AAA Gas Survey.

Predicting the fluctuations of the global price of crude can often be dicey.

Few experts expected the price of oil to drop from about $100 a barrel in June 2014 to below $27 a barrel in February.

There are indications prices may be stabilizing. The futures price for U.S. crude finished at $42.17 a barrel Tuesday and the global price closed at $44.69 a barrel. Those are the highest levels for each benchmark since November.

Reports came out Tuesday that oil giants Saudi Arabia and Russia have agreed to a production freeze, which could spur higher prices if global production declined.

But some analysts wondered if it would have much effect, especially in California, with the state’s “boutique blend” of gasoline that is almost unique among other states.

Loading...