Published: May 17, 2024
by Michael Guta
In Small Business News
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Average monthly prices for regular-grade retail gasoline in the United States could rise by more than 10 cents per gallon if refinery output falls short of expectations. This is according to an analysis published on May 14 by the U.S. Energy Information Administration (EIA).
In the May Short-Term Energy Outlook (STEO), which serves as the Base case for this new analysis, the EIA forecasts that summer regular retail gasoline prices will average around $3.70 per gallon. The new analysis, a Perspectives supplement to the May STEO, explores a High Refining Cost scenario, examining several potential factors that could drive prices higher.
The High Refining Cost scenario in the analysis considers several key factors:
- Lower Gasoline Yields: Reduced production of high-octane gasoline blend components could result in lower overall gasoline yields, leading to increased costs.
- Regional Price Differences: The analysis looks at the impact of widening price differences between retail prices on the East and West Coasts compared to