Summer gas is the cheapest it has been in 12 years

Summer Gas Prices

Summer gas prices are expected to remain at their lowest seasonal price in 12 years, according to a government forecast released Tuesday.

Gas is expected to average $2.27 a gallon nationwide during the April through September summer driving season, based on numbers from the Energy Information Administration.

Compared to last summer that’s a decline of 36 cents, or 13%.

Gas costs more in the summer months because of strong driver demand and environmental regulations that require a more expensive blend of gas to fight smog.

The national average for gas was $2.36 a gallon on Tuesday, according to AAA, down from $2.75 a year ago during the same period.

Prices have remained low even after Brent crude jumped to $47 a barrel in May, up $5 from April.

Gas prices hit a 12-year low of $31 in January.

Prices could remain low thanks to Iran’s increasing oil output and OPEC’s inability to set a price ceiling among its member-nations.

Why we support the Prime Act for a more resilient and anti-fragile food supply in America

Written by Lane Hanson

Lane Hanson

Lane Hanson is BusinessPundit's Economy Editor. He reports on major changes in the US and Global Economies.