The timing is unfortunate. Just over a month to go to Memorial Day, with the arrival of the American driving season, and the forecourt price of gasoline is already outstripping the US Energy Information Administration’s expectations.
Published just this week, the EIA’s Spring 2008 report declares:
Looking ahead, expectations for U.S. gasoline supply relative to demand are for a more favorable supply situation in January through May 2008 than was the case in 2007. Demand growth is expected to slow somewhat, while at the same time, refinery capacity availability and imports show signs of improvements. However, crude prices continue to rise, pushing gasoline prices higher.
In fact average forecourt prices have now risen to $3.56, with premium grade gasoline hitting $3.79 and diesel costing $4.14.
That’s about 168 gallons of gas in the tank for those expecting the maximum $600 tax rebate cheque, due to land on American doormats next month.
There is some evidence that high prices are curbing Americans’ tendency to jump behind the wheel, as this graphic from KansasCity.com illustrates. 
The EIA is predicting that gas consumption will fall 0.3 per cent in 2008 - which doesn’t sound very impressive, but for the fact that this would be the first fall seventeen years.
On Wednesday, the price of crude stepped back from the $120 level threatened earlier in the week as dollar rot set in once more and a potential refinery strike in Scotland threatened North Sea production. Crude - both the light American blend and London Brent - have jumped about 20 per cent in April.
Related links:
Fuel Gauge - The Big Picture
Bubbly oil - Free Exchange
Gasoline usage heads down — KansasCity.com
