News Items: Gasoline Should Cost Less in 2013 (Another Dish of Pablum Served up by AP)

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Gas & Oil , AP, Cost Of a Gallon Of Gas, Gas Refineries, More Expensive In 2013, Price Of Gas, Business News

Gas & Oil , AP, Cost Of a Gallon Of Gas, Gas Refineries, More Expensive In 2013, Price Of Gas, Business News

Hamburger, health care and taxes are all set to take a bigger bite out of the family budget this year.

Hamburger, health care and taxes are all set to take a bigger bite out of the family budget this year.

But drivers' annual gas bills are expected to drop for the first time in four years.

Forecasters say ample oil supplies and weak U.S. demand will keep a lid on prices.

Forecasters say ample oil supplies and weak U.S. demand will keep a lid on prices.

Forecasters say ample oil supplies and weak U.S. demand will keep a lid on prices.

The lows will be lower and the highs won't be so high compared with a year ago.

The average price of a gallon of gasoline will fall 5 percent to $3.44, according to the Energy Department.

The average price of a gallon of gasoline will fall 5 percent to $3.44, according to the Energy Department.

The average price of a gallon of gasoline will fall 5 percent to $3.44, according to the Energy Department.

The average price of a gallon of gasoline will fall 5 percent to $3.44, according to the Energy Department.

"Everything is lining up to lead to softer prices this year," said Tom Kloza, chief oil analyst at the Oil Price Information Service.

"Everything is lining up to lead to softer prices this year," said Tom Kloza, chief oil analyst at the Oil Price Information Service.

But a discount of 19 cents per gallon from 2012 would save the typical household $205 this year and free up $25 billion that could go instead to restaurants, malls or movie theaters — the kind of consumer spending that accounts for 70 percent of American economic activity.

But a discount of 19 cents per gallon from 2012 would save the typical household $205 this year and free up $25 billion that could go instead to restaurants, malls or movie theaters — the kind of consumer spending that accounts for 70 percent of American economic activity.

But a discount of 19 cents per gallon from 2012 would save the typical household $205 this year and free up $25 billion that could go instead to restaurants, malls or movie theaters — the kind of consumer spending that accounts for 70 percent of American economic activity.

But a discount of 19 cents per gallon from 2012 would save the typical household $205 this year and free up $25 billion that could go instead to restaurants, malls or movie theaters — the kind of consumer spending that accounts for 70 percent of American economic activity.

But a discount of 19 cents per gallon from 2012 would save the typical household $205 this year and free up $25 billion that could go instead to restaurants, malls or movie theaters — the kind of consumer spending that accounts for 70 percent of American economic activity.

"It's a little benefit to the economy, and it's a little more reason the Fed doesn't have to worry about inflation," said James Hamilton, an economist at the University of California at San Diego who studies energy prices.

"It's a little benefit to the economy, and it's a little more reason the Fed doesn't have to worry about inflation," said James Hamilton, an economist at the University of California at San Diego who studies energy prices.

"It's a little benefit to the economy, and it's a little more reason the Fed doesn't have to worry about inflation," said James Hamilton, an economist at the University of California at San Diego who studies energy prices.

"It's a little benefit to the economy, and it's a little more reason the Fed doesn't have to worry about inflation," said James Hamilton, an economist at the University of California at San Diego who studies energy prices.

Forecasters caution that they can't predict other factors like Middle East tensions, refinery problems or hurricanes along the U.S.

Forecasters caution that they can't predict other factors like Middle East tensions, refinery problems or hurricanes along the U.S.

Forecasters caution that they can't predict other factors like Middle East tensions, refinery problems or hurricanes along the U.S.

Forecasters caution that they can't predict other factors like Middle East tensions, refinery problems or hurricanes along the U.S.

Gulf Coast — in other words, the same events that caused gasoline prices to spike in 2011 and 2012.

Gulf Coast — in other words, the same events that caused gasoline prices to spike in 2011 and 2012.

Gulf Coast — in other words, the same events that caused gasoline prices to spike in 2011 and 2012.

Any or all of those troubles could crop up again in 2013 and push pump prices above last year's record average of $3.63 a gallon.

Then came the Arab Spring, which included the shutdown of Libya's oil production.

The government's forecast for last year also turned out to be too low, by 18 cents per gallon.

And, Hamilton said, consumer spending might not see a boost from lower gasoline prices because most Americans will be paying higher taxes.

The expiration of last year's payroll tax reduction will cost an extra $579 for households making $40,000 to $50,000 in 2013, according to the Tax Policy Center, a non-partisan Washington research group.

The expiration of last year's payroll tax reduction will cost an extra $579 for households making $40,000 to $50,000 in 2013, according to the Tax Policy Center, a non-partisan Washington research group.

The expiration of last year's payroll tax reduction will cost an extra $579 for households making $40,000 to $50,000 in 2013, according to the Tax Policy Center, a non-partisan Washington research group.

The expiration of last year's payroll tax reduction will cost an extra $579 for households making $40,000 to $50,000 in 2013, according to the Tax Policy Center, a non-partisan Washington research group.

The expiration of last year's payroll tax reduction will cost an extra $579 for households making $40,000 to $50,000 in 2013, according to the Tax Policy Center, a non-partisan Washington research group.

But after average gas prices rose in 2010, 2011, and 2012, a little relief will be welcome in 2013.

Global demand has risen as the developing economies of Asia, Latin America and the Middle East burn more gasoline, diesel and jet fuel.

Global demand has risen as the developing economies of Asia, Latin America and the Middle East burn more gasoline, diesel and jet fuel.

Global demand has risen as the developing economies of Asia, Latin America and the Middle East burn more gasoline, diesel and jet fuel.

At the same time, unrest in the Middle East has sparked fears of widespread supply disruptions in a region that produces a quarter of the world's oil.

At the same time, unrest in the Middle East has sparked fears of widespread supply disruptions in a region that produces a quarter of the world's oil.

That makes traders willing to pay higher prices up front for oil as a way to protect against possible dramatic price spikes in the future.

That makes traders willing to pay higher prices up front for oil as a way to protect against possible dramatic price spikes in the future.

That makes traders willing to pay higher prices up front for oil as a way to protect against possible dramatic price spikes in the future.

That makes traders willing to pay higher prices up front for oil as a way to protect against possible dramatic price spikes in the future.

This year, global oil demand is expected to rise slightly again, but increased production, especially in the U.S., should keep supplies ample.

Energy Information Administration said this week that American production will grow next year by 900,000 barrels per day, the nation's biggest single-year increase ever.

By 2014, U.S. production will reach its highest level since 1988.

At the same time, U.S. gasoline consumption is back down to 2002 levels because of more fuel-efficient cars and the tepid economy.

At the same time, U.S. gasoline consumption is back down to 2002 levels because of more fuel-efficient cars and the tepid economy.

At the same time, U.S. gasoline consumption is back down to 2002 levels because of more fuel-efficient cars and the tepid economy.

That means the U.S. will need to import less oil, which will increase global supplies and help tamp down prices somewhat.

The current average retail price of gasoline is $3.31 per gallon, 6 cents lower than last year, according to AAA, OPIS and Wright Express.

The current average retail price of gasoline is $3.31 per gallon, 6 cents lower than last year, according to AAA, OPIS and Wright Express.

AAA predicts gas won't surpass $3.80 a gallon this year.

Tom Kloza of OPIS expects price differences between regions of the country will remain large, and local prices could be volatile as supplies build and dwindle.

Tom Kloza of OPIS expects price differences between regions of the country will remain large, and local prices could be volatile as supplies build and dwindle.

Tom Kloza of OPIS expects price differences between regions of the country will remain large, and local prices could be volatile as supplies build and dwindle.

Just in the last four months, gasoline supplies on the West Coast fell to their lowest level in a generation, then rose to where they are now, their highest level in a generation.

It will rise again during the hurricane season along the Gulf Coast, the nation's oil-refining hub, before moving lower toward the end of the year.

It's that up-and-down movement that will dictate drivers' moods.