Prices at the pump are expected to drop for the second consecutive summer, according to a U.S. Energy Information Administration (EIA) report (link opens in PDF) released today.

After a 34% spike from 2010 to 2011, summer retail gasoline prices bumped down in the summer of 2012 and are expected to drop again this summer. According to EIA's report, drivers can expect an additional $0.06 shaved off this summer's per-gallon cost, putting the average at $3.63, compared to last summer's $3.69 average.


Source: eia.gov. 

The EIA assessment notes lower Brent crude oil prices, non-OPEC supply growth, and increased fuel economy as the main drivers behind the projected drop.

On a regional basis, West Coast pump prices should drop the most, from $4.02 last summer to $3.89 per gallon  this summer. The Midwest and Rocky Mountain regions are expected to receive a $0.09 cut from 2012's pump prices, followed by a $0.04 drop on the East Coast and a $0.02 decrease for the Gulf Coast.

link

The article Pump Prices Predicted to Drop for 2nd Summer in a Row originally appeared on Fool.com.

Y ou can follow Justin Loiseau on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Small Cap Investing

Learn now to invest in small companies the right way.

View Course »

Introduction to Economic Indicators

Measure the performance of the economy.

View Course »

Add a Comment

*0 / 3000 Character Maximum