EIA: US Average Fuel Savings Climb To $550 In 2015
With fuel prices still falling as of this writing, the U.S. Energy Information Administration issued a report forecasting an average of $550 in savings at the pump for a typical family in 2015.
The new average cost in gasoline expenditures for 2015 is expected to hit $1,962, the first time said spending fell below $2,000/year since 2009.
As for what people are likely to do with their $550 that would have gone into the tank, the EIA believes that savings will go into “other goods and services, pay down debt, and/or increase savings.” The agency also noted that demand is “very price inelastic over short time periods,” as consumers will fill their tanks to as much as they see fit despite how much a gallon is priced.
Down on the trading floor, the EIA expects Brent crude to average $68/barrel in 2015, while West Texas Intermediate will land around $63/barrel over the same period. Increases in fuel economy and U.S. oil production, as well as OPEC’s decision to hold the line regarding its own output, are contributing to the forecasted savings, as well.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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We need to continue to encourage more fuel efficient and reliable cars into the market like we have been doing! I'm looking at saving over $1000 after switching to my Accord from my enthusiast focused BMW, and with these prices vs. last year. That would have been 7% of my income last year. It's closer to 3.5% this year which is still substantial. I am saving 20% on fuel costs with my Accords fuel economy and another 40% with these fuel prices, and probably another 50% on repair costs. That is around 20% of all my income (~$16k after taxes) from last year that is going back into the economy! I have already gone on two vacations overseas, got a newer car, paid for community college, got a better job, saved some money and started planning my home theater system! Imagine if I lived in a third world country, the savings would be even bigger! The cars we buy and how much fuel we use affect others too!
I wonder how that compares to the inevitable gas price increase once the Saudis cut production after the frackers shut down and before they have time to start up again...
What really stinks is I would seriously consider a diesel Cruze right now - the 2014's are up to $6k off. But a gallon of oil is $1.59 higher than gas locally, the difference used to be only $.20!!
Reality vs. conjecture: Diesel here is $2.53. It's coming down, folks. That is pre-Katrina pricing. I've never bought diesel under $3 since buying my 300SD ten years ago. I am not a macro thinker nor am I an economist, but I have yet to see how giving $50-100 to every driver in America every month is able to meaningfully depress wages. It's made parking at the mall damn near impossible this week, and tables hard to get at my favorite eatery, but I just don't see your conclusion...