Gas Prices: A Non-Issue for Most Car Shoppers This Summer | Edmunds

Gas Prices: A Non-Issue for Most Car Shoppers This Summer


WASHINGTON — Gas prices have fallen for 10 consecutive days, reaching a nationwide average on Tuesday of $2.32 per gallon, a trend that should have an impact on car shoppers' behavior this summer.

The AAA Daily Fuel Gauge Report on Monday said crude oil remains relatively less expensive than in recent years, "which is contributing to direct savings at the pump." Traditionally, pump prices peak during the summer months.

"These savings are likely to continue as supply appears more than capable of keeping pace with growing demand," it said.

AAA said pump prices are likely to remain "at some of these lowest levels since 2005 and these comparative savings should persist, barring any major disruptions in production or supply."

The U.S. Energy Information Administration said regular gasoline retail prices are forecast to average $2.27 per gallon during the summer driving season, 36 cents per gallon lower than last summer.

The drop in pump prices is expected to further boost truck and SUV sales. Vehicles such as the Ford Explorer, Jeep Renegade and Nissan Rogue flew out of dealer showrooms in May, as pickups and SUVs continued to outsell cars.

At the same time, loyalty to hybrid and electric vehicles is at an all-time low, according to a recent analysis by Edmunds.com.

Consumers instead are turning to fuel-efficient compact crossovers, including the Buick Encore, Ford Escape, Honda CR-V and Toyota RAV4.

Edmunds says: Car shoppers factoring pump prices into the equation have little to worry about this summer.

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