WASHINGTON, D.C. — Retail gas prices will peak in June with prices at such lofty levels it will make many Americans think twice about hitting the road this summer, the Energy Department said. The government had previously estimated that gas prices would peak near $3.60 a gallon. Many analysts predict prices will rise higher than the EIA's latest estimate, and approach $4 a gallon.
Crude oil prices are the biggest reason gas and diesel prices are rising, the EIA said. Oil is now expected to average $101 a barrel this year, up from the EIA's previous projection of $94. Next year, the EIA expects oil to average $92.50 a barrel, up from a previous projection of $86.
Diesel prices, which are already averaging more than $4 a gallon nationwide, will average $3.62 a gallon this year, up 74 cents from 2007, the EIA said. Diesel fuel is used to transport the vast majority of the world's food, consumer, and industrial products. High diesel prices are one of the reasons food prices are soaring.
Source: Associated Press