Higher Summer Gas Prices Predicted Amid High Demand And Lower Supply

MINNEAPOLIS (WCCO) -- The U.S. Energy Information Administration predicts U.S. gasoline prices will be higher than average this summer. Their Short-Term Energy Outlook Report says gas prices are currently slightly below 2018 levels, but are expected to rise.

Gasoline prices have decreased for two straight weeks, but the administration says they expect prices through September to be around $2.92 per gallon. Last summer's average was $2.85 per gallon.

The report says factors contributing to increasing prices are: high demand for gasoline, falling gasoline supply, and higher refining margins-- or the value of processing crude oil into gasoline.

The EIA also said renewable fuels like wind, solar and hydropower will likely produce 18% of the nation's electricity this year and nearly 20% in 2020. The report says the EIA expects wind power to surpass hydropwer to become the most-used renewable energy source in 2019 and 2020.

Coal production is also expected to decline by nine percent in 2020, the EIA says. The report also predicts energy-related carbon dioxide emissions will decline by 0.8% in 2020.