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.
The post EIA: US Average Fuel Savings Climb To $550 In 2015 appeared first on The Truth About Cars.
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