U.S. motorists last month enjoyed the lowest summer gasoline prices on record, adjusted for inflation, reported the U.S. Energy Information Administration.
As of July 27, U.S. retail regular gasoline prices averaged $1.05/gal, roughly 14.5¢ lower than at the same time last year.
EIA said that, after adjusting for inflation, U.S. consumers this past spring saw retail motor gasoline prices reach their lowest level ever, at $1/gal.
"The low gasoline prices are primarily due to weak crude oil prices, which averaged about $15.30/bbl, $6/bbl (14.5¢/gal) lower for the first half of 1998 than in 1997."
EIA said preliminary data indicate consumers have been buying higher grades of gasoline, given lower prices, rather than simply increasing their driving. Purchases of premium grade gasoline have increased 7% from April 1997 to April 1998.
The agency said prices may have reached their bottom however, as gasoline consumption typically increases when motorists head into the remaining vacation weeks. It said that consumers may see price increases at the pump of roughly 2-3¢/gal before the Labor Day holiday on Sept. 7, but high stocks and continued high refinery runs may dampen that increase.
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