The Car and Truck Fleet and Leasing Management Magazine

Energy Dept. Doesn't Forecast Gas Averaging $3 Per Gallon in ‘06

April 20, 2006

WASHINGTON, D.C. – The Energy Department’s Energy Information Administration (EIA) said this week it still doesn’t expect the U.S. average retail price for regular grade gasoline to reach $3 per gallon in 2006. “While some stations have already posted prices for regular gasoline that exceed $3 per gallon and it is certainly possible that average retail prices across the country could reach that level sometime this year, EIA is not forecasting prices that high, on average, over a whole month,” the department’s Energy Information Administration (EIA) said in its weekly report. “Our forecast assumes that there are no major problems in U.S. refineries, pipelines, or any part of the distribution chain. It also assumes that no additional oil production disruptions occur overseas.”The EIA went on to explain the main factors behind the current high prices: a reduction in gasoline production because a significant amount of refinery capacity is now offline; three Gulf Coast refineries are just now beginning to return to operation; some refineries undamaged by the hurricanes postponed planned maintenance to maximize short-term production.Compared to weekly data in 2005, gasoline production for the most recent four-week period is down 457,000 barrels a day, while gasoline demand has risen slightly compared to last year, the EIA said. “As a result,” the EIA said, “finished gasoline inventories have been pulled down sharply, dropping more than 20 million barrels over the past four weeks, despite large volumes of imports. However, as the refineries return to full operation, gasoline production should increase, thus adding much needed supply into the system.”
Twitter Facebook Google+


Please note that comments may be moderated. 
Leave this field empty:

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.


Fleet Faq Fuel Management

Bernie Kanavagh from WEX will answer your questions and challenges

View All


Fleet Tracking And Telematics

Todd Ewing from Fleetmatics will answer your questions and challenges

View All


Fleet Management And Leasing

Merchants Experts will answer your questions and challenges

View All


Sponsored by

Tesla Motors is an electric vehicle manufacturer founded in 2003.

Read more

Fuel Saving Strategies Survey

View our 2008 survey to benchmark your fleet's fuel and green strategies with other fleets.

Fuel Calculator

A managed fuel program can help you save time and money and gain control over the way you fuel your vehicles. Determine your potential savings by using our fuel calculator.
Launch Fuel Calculator 

Fuel Prices

U.S. Gasoline and Diesel Fuel Prices.

Launch Fuel Prices 

Up Next

More From The World's Largest Fleet Publisher