$4-a-gallon gas forecast in some areas

WASHINGTON


The EIA report notes, however, that “even if the national average monthly gasoline price peaks near that level, there is a significant possibility that prices during some shorter time period, or in some region or subregion, will cross the $4 per gallon threshold.”

The projection came as the Energy Department and the International Energy Agency have lowered their forecasts for energy demand growth in 2008. Despite that, oil prices continued to break records. The price of a barrel of light, sweet crude for delivery in April rose 85 cents to $108.75 in trading Tuesday. Oil accounts for about two-thirds of the U.S. retail gas price.

In its monthly report Tuesday, IEA, an energy policy adviser to 27 countries including the United States, warned of continuing high fuel prices. “We are in an era of higher oil prices, and so if we look at $100 (per barrel) oil, we have to do so with an understanding that prices are unlikely to return to levels seen in the early part of this decade.” Oil prices at the beginning of the decade were in the $20-to-$30-a-barrel range.

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