The Car and Truck Fleet and Leasing Management Magazine

Prices at the Pump Not Likely to Drop Soon

May 12, 2006

WASHINGTON, D.C. --- A senior Energy Department official's testimony before the House energy committee on Wednesday provided little hope that gasoline prices will go down anytime soon. "Crude oil prices are expected to remain at relatively high levels, supporting high gasoline prices for the foreseeable future," said Howard K. Gruenspecht, deputy administrator of the Energy Information Administration. According to an AP report of the testimony, he blamed the high prices on a variety of factors including world markets, political instability in oil-rich countries, a shortage of new refineries in the U.S., hurricanes, efforts to change gasoline blends and -- perhaps -- overpricing by oil companies. The "crack spread," a term referring to the difference between the prices of crude oil and refined gasoline, has increased to $21 a barrel, Gruenspecht said. That indicates, he said, that American oil companies are "making good money." Gruenspecht added that experts predicted that crude oil prices would average $68 for a 42-gallon barrel this year and next year as U.S. demand increases 1 percent annually. Average prices for regular gasoline in the summer driving season are expected to hold at $2.71 a gallon. That's 34 cents higher than last year. Of course, some metropolitan areas are experiencing prices much higher than the national average.
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.

Sponsored by

An application’s ability to retain its speed and functionality even when significantly more load is placed on it, such as more vehicles, more users, more requests, etc.

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