EIA forecasts U.S. retail gasoline price to fall to $3.10/gal in 2025, $2.90gal in 2026

U.S. Energy Information Administration expects U.S. average retail price for regular-grade gasoline will average about $3.10 per gallon this year – down 20 cents per gallon from last year.  In its latest Short Term Energy Outlook published last week, EIA forecast retail gasoline price will fall to an average of $2.90/gal in 2026 with the annual average falling below $3/gal in all regions except the west coast.

EIA added, “U.S. drivers’ gasoline expenditures as a share of disposable personal income are likely to be the lowest since at least 2005 – excluding the pandemic-affected year of 2020.  We estimate expenditures will average less than 2 percent of disposable income this year – down from an average of 2.4 percent over the previous decade.”