The Energy Information Administration announced yesterday that the national average retail price of regular gasoline ticked up by 0.2 cent in the week ended August 26, moving to an average “price at the pump” of $3.552 per gallon.
The Energy Information Administration announced yesterday that the national average retail price of regular gasoline ticked up by 0.2 cent in the week ended August 26, moving to an average “price at the pump” of $3.552 per gallon. This increase took place despite prices in West Coast states falling to six-month lows due to improved inventory conditions.
Compared to year-ago prices, Americans are paying 22.4 cents less than they would have paid for regular gasoline on August 26, 2012. This is the largest gap between present and year-ago average prices since May 6 of this year.
The uptick in gasoline prices took place a 1.8 percent decrease in U.S. inventories, as this metric reached its lowest level since May 10. But compared to inventories at the end of summer 2012, inventories are still higher by 7.7 percent year-over-year. Gasoline prices are 13.7 percent below the record high of $4.114 per gallon that was reached on July 7, 2008.
For the month of August, gasoline prices averaged $3.722 per gallon, exceeding the EIA’s projection in its Short-Term Energy Outlook, where the most recent prospectus had forecasted an average price of $3.65 per gallon this month. It is, however, more closely aligned to the year-ago August average of $3.72 per gallon. The EIA tracks its forecasts against New York Mercantile Exchange crude oil futures averaging $102 per barrel, an increase of over $8 from last year’s $94.30 average.
In the present month, crude for October delivery is averaging around $106. Internationally traded Brent crude prices, which also play a role in the fluctuation of gasoline prices, are averaging $109.43 in August, also exceeding the EIA’s forecast of $106 per barrel for this month.