Are gas prices peaking? I doubt it!

The Energy Information Administration is predicting that average gas prices will be around $2.95 per gallon for regular this summer. The EIA is the statistical branch of the Energy Department. They are predicting a peak around Memorial Day (how convenient!) before a dip through June and July and an upward swing again in August. A likely scenario is a post Memorial Day dip when the oil companies will again report record profits, and as soon as the United States of Amnesia returns, the price will head up to new highs.

Given that analysts are forecasting that Americans will be driving an average of 8.5 billion miles per day this summer compared to 8.4 billion last year, it is probable that any dip will be short-lived at best. Of course any sustained increase in prices will drive more people to more efficient vehicles or fewer miles, either of which is a good thing in the long term.

[Source: USA Today]