Watch out for $4 gasoline this summer

By Tom Stundza -- Purchasing, 4/9/2008 1:00:00 PM

Government forecasters finally caught up with independent economists this week when they said gasoline could reach as high as $4/gallon during the summer driving season, which runs from April through September.

Purchasingdata.com’s quarterly Energy Flash Report projected on March 31 that “soaring U.S. gasoline prices, already at record highs, will climb further this summer, and a brief flirtation with $4/gallon can’t be ruled out for some buyers.”

In its monthly report on petroleum supplies and demand this week, the Energy Department's Energy Information Administration forecast that monthly average pump prices will peak near $3.60 a gallon in June, but could rise as high as $4 a gallon at times. Associated Press reports that the new EIA projection “brings government forecasts closer to those of many analysts who expect gas prices to peak close to $4 a gallon.”