Gas Prices Expected to Top $5 a Gallon This Summer

Gas prices are incredibly high right now and there is no relief in sight.  Gas prices are expected to rise 40% for the peak summer driving season compared with 2010, according to an estimate released yesterday from the US Energy Information Administration (EIA). Most experts agree with the federal prediction, and are saying that consumers and businesses should prepare as gas prices are expected to continue increasing over the next several months.

These predictions are saying that the average price for gas in the US will top $4 per gallon.  According to the EIA, the current average price in the US for a gallon of unleaded regular gas is $3.79.  One year ago, gas prices were at $2.86, an increase of 93 cents. In several states including California, Hawaii and Alaska,  gas prices are expected to reach over $5 per gallon. The average price for a gallon of unleaded regular gas in California is currently $4.02.

The average price for a regular unleaded gallon of gas will peak at $3.91 a gallon in early summer and will average $3.86 from April through September, 2011, up from $2.76 for the same time period in 2010, according to the EIA. The EIA also said the average U.S. household’s vehicle fueling costs will reach $3,360 in 2011, an $825 increase from 2010 levels.  Crude oil is predicted to average $112.50 a barrel this summer, up about 50% from last year.

Unfortunately the price predictions for next year aren’t any better. The EIA said it expects an annual average of $3.70 per gallon for the current year, and $3.80 per gallon for 2012.

 

If your small-to-mid-sized business has a fleet of cars, trucks, vans or equipment to deliver your product or service, high gas prices can have a huge impact on your bottom line.  FieldLogix GPS fleet tracking system can help you to reduce your fuel expenses and become more efficient in delivering your product or service. For more information, please see our fleet tracking system demos.

 

Categories: Fleet Management News