Gas Prices Expected to Decline in 2013

The U.S. Energy Information Administration announced that gas prices at the pump in the US might fall in 2013 to an average $3.44 per gallon.

Tuesday, January 8th, the US Energy Information Administration announced it expects the price of gasoline at the pump in the US to fall this year to an average of $3.44 per gallon, from the 2012 price of $3.63 per gallon. The price is expected to fall as crude prices will decline.

The Administration also predicts that the retail gasoline prices will further fall in 2014 reaching an estimated $3.34 per gallon. The EIA said that gasoline prices will fall because of a drop in world oil prices over the period.

This year global benchmark Brent crude is expected to average $105 per barrel, a decrease from $112 per barrel last year, and the price might reach $99 per barrel in 2014. The agency cautions that the drop in gas prices might impact US auto sales from small compact cars, such as the Hyundai Elantra, to full-size trucks, such as the Ram 1500.

According to the U.S. Energy Information Administration the price of diesel fuel might slightly decline to $3.87 a gallon this year from $3.97 a gallon in 2012.