Gas prices have fortunately remained steady for most of the month of April. The improving economy and the start of the summer driving season are two indicators that prices will start to creep up as we approach the Memorial Day weekend. Currently, gasoline prices in the United States are averaging $2.85, which is only an increase of two cents per-gallon from last month at this time. Dieselâ€™s average price is $3.07 an increase of 12 cents per-gallon from last month.
According to gasbuddy.com, in the contiguous U.S. right now South Carolina has the lowest price for gas at $2.62 and California has the highest average price of $3.08. Tulsa, Oklahoma has the lowest price for cities at $2.64 and San Francisco, California the highest at $3.14.
Forecasts over the summer driving season show a slight increase in consumption over 2009 of .5%, which is less than the increase from 2008 to 2009. Although signs show the economic recovery is increasing fuel consumption, the increase in the price of retail gasoline is helping to counteract the raise in demand. The U.S. Energy Information Administration is predicting an average price increase of 50 cents per-gallon for the summer of 2010 over the summer of 2009 with the peak average price of $2.97 only three cents lower than the predicted summer average.
The one factor that may turn out to be a wild card in this summerâ€™s fuel prices, as well as President Obamaâ€™s initiatives to increase off-shore well drilling, is the recent explosion and oil leakage of a tower in the Gulf of Mexico. Although the impact has not yet been measured of the loss of production from the well, it is likely that replacing that oil with foreign oil will be more expensive as the U.S. dollar continues to lose value compared to oil producing nations, especially Canada, one of the U.S.â€™s largest suppliers.
Autobird Fuel Price Breakdown for the Week of May 25th 2010
All prices in U.S. dollars per-gallon for regular grade gasoline unless otherwise noted
- Mirko Reinhardt (Bad Oldesloe, Germany): $6.00 diesel
- Jeremy Sally (Vancouver, BC, Canada): $4.33
- Colin Bird (Chicago, IL): $3.12
- Justin Loyear (Fresno, CA): $3.09
- Joel Feder (Minneapolis, MN): $2.88
- Will Maley (Auburn Hills, MI):Â $2.82