AAA – 2013 Gas Prices will be Lower than Last Year

The American Automobile Association predicts that, following a usual surge in gasoline prices in spring, the current gasoline prices will be cheaper this year compared to last year.

Because of stronger domestic oil output and weaker demand, AAA projects the national average gasoline price to sharply rise to between $3.60 and $3.80 a gallon, disregarding any important and unexpected events. That level compares to last year’s highest rate at the pump of $3.94 per gallon.

The yearly average of gasoline prices last year was a record high at $3.60 a gallon. However, the situation for drivers is currently getting better. On January 5, the daily gasoline price average at the national level fell lower than its rate last year, a first since the 20th of August. That implies that the expense of drivers for gasoline prices today are less compared to the past year, a trend that will most possibly go on.

According to Robert Darbeinet, the CEO and President of AAA, lower prices of gasoline are great news for the many Americans who are depending on their vehicle to bring them where they need to go. Lower prices at the pump should lead to billions of savings in the household, considering that most of Americans are highly dependent on their cars, added the President.

The price of gasoline should constantly increase in April or the early parts of May. However, the rise will be at a slower rate compared to the past year. As is usual for that period of the year, prices at the pump will increase due to the seasonal increases in demand and in anticipation of the shift to more costly summer blend gas. After a peak in the latter parts of spring, each gallon of gas should fall during the first part of the summer to as low as $3.20 to $3.40 before increasing again, way before the hurricane season in the Gulf Coast and the switch to winter blend gas. Prices at the pump should close this year by dropping to low averages.

By: Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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