REPORT: Energy Department predicting summer gas price high of just $2.30/gallon [w/POLL]
Click on the image above to take our summer of 2009 gas price poll
We've heard it a million times: What's good for General Motors is good for America. Well, if low gas prices are good for America (and that is a debatable point), then Charles Wilson's saying does not work the other way around. According to USA Today, the U.S. Energy Information Administration is predicting that gasoline prices will hover around $2.23-$2.42 between now and the end of 2010, with a summer high of just $2.30 this year.
Why does GM care about this? Because they need higher prices to make their forthcoming Chevrolet Volt extended-range plug-in more appealing. GM has already admitted that the Volt's price tag will be connected to the price of gas when the plug-in car goes on sale at the end of 2010. Before he was booted, then-CEO Rick Wagoner said that $4 gallons were not the worst idea.
Why does the EIA think that $3 gasoline isn't on the horizon any time soon? Because of low demand and low global crude prices. The weak economy and surplus oil production capacity don't help one bit, either. Diesel fans could feel like winners, though: the EIA thinks that diesel prices might soon drop below gasoline for the first time in two years.
What do you think the average price of gasoline will be this summer? Click on the jump and place your best guess in our poll!
Gallery: 2011 Chevy Volt
[Source: USA Today | Image: Justin Sullivan/Getty]
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Reader Comments (Page 1 of 3)
nardvark 3:03PM (4/15/2009)
Road Trip!
Reply
BoxerFanatic 3:03PM (4/15/2009)
Under 3.00$ gallon covers all the other options below it.
Unless Iran attacks Israel, or something, and geo-politics goes nuts again, in the middle-east.
And why is the Chevy Volt the gallery for this article? Are you just trying to pimp it out even more, and I don't mean adding dubs and ICE...
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chineyz954 3:04PM (4/15/2009)
That is not why the prices were high.
Taglane 3:07PM (4/15/2009)
And that's also a horrendous thing to do to the Volt.
BoxerFanatic 3:41PM (4/15/2009)
I know that wasn't the reason in the past... but it could be the reason in the future.
and it seems to be Autoblog that is pimping the Volt pictures, I just wonder what direct relevance the Volt gallery has to this article, or if it is just another reason to keep harping on iffy vaporware and wishful thinking.
Taglane 4:27PM (4/15/2009)
I hate how you call it Vaporware when there are a few first drives floating around the web.
Cellien 4:42PM (4/15/2009)
Volt gallery perhaps cause it's the car mentioned in the article?
BoxerFanatic 5:09PM (4/15/2009)
It is Vaporware until GM sells them on their lots.
A mule is much different than saleable units, and GM itself is on the brink, even if the Volt is meeting engineering expectations.
There is a long way to go before that car is sold to someone. When that happens, it won't be vaporware. Until that happens, it is anybody's guess.
It is called not counting chickens before the eggs are hatched.
Pokey 12:55AM (4/16/2009)
Good grief, I can't wait until the Volt goes on sale, so people will stop using the word vaporware on AutoBlog.
That word just seems very out of context when used in automotive terms, and it makes me cringe everytime I read/hear it.
Please, no more V word!
TomdeTomTom 5:04AM (4/16/2009)
Hmmm... a Prius with rims and a body kit racing a Chevy Volt with rims and a body kit. Somehow, somewhere it will happen (probably in 2012) and it will be the stupidest thing to happen to a hybrid in history.
Epyx 3:10PM (4/15/2009)
Why is Volt mentioned in this article?
Is it coming out this summer? No, so what does the price of gas matter to non-existent Volt sales?
A better example would be the new Prius and Honda Insight that will face both a crappy economy AND relatively low fuel prices.
$2.50 gas is only considered cheap based on recent memory. A few years ago people were terrified at the prediction of $2.50 gas. Medium income has not increased and unemployment has risen. If anything, just on purchasing power $2.50 gas should be just as dreadful as it was a few years ago.
We dont need to shoehorn a Volt or GM conversation into every post.
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Beat-it-nerd 3:15PM (4/15/2009)
Thank you! What was the point of that?
Tourian 3:42PM (4/15/2009)
Because they obviously feel like shohorning GM and The Volt in every post. This makes no sense. Its like sharks smelling blood in the water, or kicking someone when they're down.
And another thing, I don't believe staments like "Because of low demand and low global crude prices. The weak economy and surplus oil production capacity don't help one bit, either." as reasoning for low prices. I feel like we are being manipulated by those who do control prices.
RJ 3:59PM (4/15/2009)
Agree. Dumb article.
GM has much more to GAIN from low gas prices than high prices. Let's see, what generates from income: moving 1.5 million pickups and SUVs off the lot @ $1.2/gal gas, or moving 50,000 volts off the lot (and much less profit/car) @ $3.5/gal gas?
In fact, if gas had remained $1.50 all along, the Detroit 3 wouldn't be in nearly as much trouble as they're in today.
Jake B 6:44PM (4/15/2009)
Agreed, dumb article. Especially when the slackened demand and excess supply is due to the weak economy. You can't claim that x, y, and z are creating the situation when x is actually the problem with y and z being a consequence.
montoym 12:31PM (4/16/2009)
quote from Tourian:
- "And another thing, I don't believe staments like "Because of low demand and low global crude prices. The weak economy and surplus oil production capacity don't help one bit, either." as reasoning for low prices. I feel like we are being manipulated by those who do control prices." -
Huh?
So, you want it both ways just to justify your assumption that oil prices are controlled?
Let's examine that for a moment.
When prices were high, many people(I assume you as well) claimed that it was proof that prices are controlled. High prices equal high profits for oil companies. OK, fair enough, even if there's been no proof of price-fixing despite numerous inquiries.
So, now that prices are dramatically lower, that's now proof that the prices are controlled? So, the controlling agency is now conspiring to keep prices low so that they can make a whole lot less money now I suppose? What kind of sense does that make? Particularly if you assume that the same controlling agency is at work in both cases.
Seems to me that if there were a controlling agency at work in the crude market, they'd conspire to keep prices high so as to keep the gravy train moving rather than to suddenly drop prices to a third of their high and cut off their money supply.
Plus, I'd be interested to know who makes up this controlling agency you imagine is at work? It's certainly not OPEC as their production cuts of the past 6 months or so have done nothing to move oil prices much higher. If they're the controlling agency, then I think we don't have much to fear currently. Their power has been diminished greatly mainly due to infighting amongst members.
accelerating_cubicle 12:20AM (4/17/2009)
gas prices has to do with supply and demand
/sarcasm
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MajorGeek 3:19PM (4/15/2009)
Heres the problem with this article. We need to find a way to bet this crap. Really, I am not a degerate gambler, but could the Energy Department tell me how they are promising no natural disasters anywhere that might affect gas prices? It has long been my contention that 2-2.30 is a bargain. More fuel efficient cars, hybrids and electrics means much less consumption. Oil companies are not a non-profit organization. I expect it to clear 2.30 by June. We'll see!
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pdubz99 4:25PM (4/15/2009)
Are you serious? "We need to find a way to bet this crap?????????" Are you completely unaware of the fact that the reason prices are what they are is because the price is constantly being, "bet?" The stupidity on the internet never ceases to amaze.
MajorGeek 4:53PM (4/15/2009)
Your right, it never does cease to amaze me, lighten up jerk.