U.S. Agency Forecasts Higher Gas Prices

WASHINGTON – While gasoline costs have reached record levels, prices at the pump are forecast to go even higher in coming weeks because of growing demand, government forecasters said Thursday.
The Energy Information Administration projected that average gasoline prices will peak at $2.35 a gallon in May. Motorists paid an average of $2.22 a gallon last week.

The statistical agency said that despite soaring costs at the pump, motorists are not easing off the roads. It projected demand for gasoline this summer at 9.3 million barrels a day, a 1.8 percent increase over last summer.

On average, regular grade gasoline is expected to cost $2.28 per gallon nationwide during the April through September period, said the EIA. Costs vary widely by region with gasoline in the West often 18 to 25 cents higher than the national average.
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