The average U.S. household will save $550 on gasoline in 2015 compared with this year, according to the Energy Department’s statistics arm.
That amounts to $1,962 of annual spending at the pump, which would be an 11-year low, the U.S. Energy Information Administration said. The EIA cautioned, however, that its price forecast is “highly uncertain” given volatility in oil markets.
Crude oil prices have plummeted in recent weeks. Brent crude, an international benchmark, fell below $60 per barrel on Monday. That was a five-year low and a steep decline from the $110 price in June.
That has translated into lower gasoline prices for motorists. The EIA predicted gasoline, which cost an average of $2.55 per gallon Monday, would sit at $2.60 per gallon next year. The price drops are a reflection of improved vehicle fuel efficiency, as well as market forces that have seen a slowdown in oil demand in the midst of global oversupply.
“Lower fuel expenditures are attributable to a combination of falling retail gasoline prices and more fuel-efficient cars and trucks that reduce the number of gallons used to travel a given distance,” the EIA said.
