Higher driving costs seen for US this summer

17 May 2006 21:58  [Source: ICIS news]

HOUSTON (ICIS news)--Driving costs during the US summer vacation season will be higher this year compared to last, regardless of whether retail gasoline prices reach $3/gallon, the Department of Energy said on Wednesday.

The department’s Energy Information Administration (EIA) said with summer gasoline prices projected to average 34 cents/gallon above last year’s average, the average added fuel cost for a 500-mile round trip vacation in a vehicle that averages 20 miles/gallon would be about $8.50. It noted that air fares also are higher.

As of May 15, the EIA’s latest US retail price survey showed the average prices of regular gasoline at just under $2.95/gallon at $2.947/gallon, up 3.8 cents/gal from the previous week.

“Average spot prices for various types of gasoline rose last week, peaking at a level that would suggest the possibility that national average retail prices could continue to rise,” EIA said. “However, a sharp decline in spot prices so far this week in various parts of the country may mean that the US average retail prices of regular gasoline may remain below $3/gallon, absent further increase in spot prices.”

The higher driving costs and gasoline prices also come at a time when many US gasoline refiners are converting from methyl tertiary butyl ether (MTBE) blended gasoline to ethanol-blended gasoline.

By: Brian Balboa
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