More Gas Price Increases Expected Through September

According to the US Energy Information Administration (EIA):

Drivers currently experiencing a spike in fuel prices will likely see further increases from now through the spring since the recent increase in crude oil prices has not yet been fully passed through to gas prices.

EIA expects the retail price of regular-grade motor gasoline to average $3.56 per gallon in 2011, 77 cents per gallon higher than the 2010 average and about 40 cents above the projected price in the previous price estimate .  The US national average for a gallon of unleaded regular gas today (March 28,2011) is $3.584 per gallon, according to the AAA Fuel Gauge Report. Gas prices in Hawaii today are $4.21 gallon; California is $4.028 per gallon; Alaska is $4.04 per gallon.

EIA projects gasoline prices to average about $3.70 per gallon during the peak driving season (April through September) with considerable regional and local variation. EIA says there is also significant uncertainty surrounding the forecast, with the current market prices of futures and options contracts for gasoline suggesting a 25-percent probability that the national monthly average retail price for regular gasoline could exceed $4.00 per gallon during summer 2011.

What do you think gas prices will do?

With gas prices this high, every mile you drive costs money. If your business requires vehicles to get the job done, then GPS fleet tracking may be right for you. GPS vehicle tracking has proven to reduce fuel costs.

A GPS vehicle tracking system can help you save thousands in fuel costs because small changes on a big scale can make a huge impact. The Aberdeen Group recently concluded that GPS tracking systems have helped companies reduce fuel costs by 13.2% on average.

Categories: Fleet Management News, Vehicle Tracking Systems