Prices at the pump easily could top $3 per gallon again this summer in Colorado and some other states, AAA said Tuesday.
That’s far higher than a U.S. Department of Energy forecast released Tuesday, which said gasoline prices are expected to average $2.62 per gallon from now through September, 25 cents more than last summer.
“We predict it’s going to be significantly higher than that,” said Alexa Gromko, spokeswoman for AAA Colorado. “The bottom line is you’re going to feel it in your wallet.”
AAA said prices could surpass $3 per gallon because of several factors – including increased demand, escalating tensions between the United States and Iran, and higher crude-oil costs. The auto club pointed out that national averages are already more than 40 cents higher per gallon than they were a year ago.
Refiners are also in the process of phasing out their use of the additive MTBE – a requirement of an energy law enacted last summer – which is tightening supplies of ethanol and pushing prices higher.
Yet government energy analysts said motorists are not expected to cut back on their summer driving – a view mirrored by AAA, which also predicts a busy summer travel season.
In fact, motorists are expected to use 1.5 percent more gasoline than last summer, according to AAA.
“Prices always go up in the summer,” Gromko said. “The Department of Energy number is pretty conservative. AAA believes this is poor (forecasting) from the government.”
Energy Department officials could not be reached late Tuesday to comment on the difference between their price forecast and AAA’s projection.
On Tuesday, the national average for regular unleaded was $2.69 per gallon, 41 cents higher than the same day last year.
In Colorado, the average price was $2.61 per gallon Tuesday, up 35 cents over last year. Gas prices in the state hit an all-time high of $3.07 in September after Hurricane Katrina disrupted 10 percent of American refining capacity.
Crude oil for May delivery climbed above $69 a barrel Tuesday to the highest level this year, before easing back to settle at $68.98 on the New York Mercantile Exchange.
Guy Caruso, head of the Energy Department’s statistical agency, said gas prices are likely to increase 10 to 15 cents a gallon in the coming weeks, peak in May and drop off in late summer.
“We assume normal weather,” said Caruso, director of the Energy Information Administration.
If a hurricane or a refinery outage causes supply problems, or if crude oil takes a major jump, prices could go higher yet, he said.
The Associated Press contributed to this report.
Staff writer Julie Dunn can be reached at 303-820-1592 or jdunn@denverpost.com.
