U.S. drivers are projected to pay an average of $2.45/gallon (gal) for regular grade gasoline this summer (April through September), according to EIA’s Short-Term Energy and Summer Fuels Outlook released yesterday. This year’s projected average summer price is down from a $3.59/gal average during summer 2014. The lower retail price this summer reflects a significant drop in world crude oil prices from last summer. As the main input cost in the refining process, crude oil is the major driver of retail gasoline prices, and U.S. gasoline prices tend to follow prices of the international benchmark Brent crude. For summer 2015, the Brent crude oil spot price is projected to average $58/barrel (bbl), which translates to $1.38/gal for the crude oil portion of the gasoline price. This oil price is down from a summer 2014 average of $106/bbl ($2.52/gal for the crude […]