State says summer gas prices to remain below forecast

Gas prices in Iowa, which fell about 6.9 percent last month, are expected to remain below forecast for the summer months.

That's the latest word from the  Iowa Office of Energy Independence in its monthly fuel price report for June. It placed the average price for regular unleaded with 10 percent ethanol at $3.57 per gallon on Thursday, June 16, down from $3.86 per gallon on May 16. The national average was $3.67.

The bad news is that even below the summer forecast, Iowa's gas prices would still remain much higher than last year.

The national average price for regular-grade gas will be about $3.75 per gallon during the summer driving season, according to the United States Energy Information Administration, six cents lower than the agency forecast last month in its Short Term Energy Outlook.

The decline in gas prices is a result of falling crude oil prices. The price of West Texas Intermediate Crude Oil for July delivery was $93.52 per barrel in mid-day trading on Friday, June 17, down from a closing price of $95.13 on Thursday, June 16, and down about 5 percent over the previous month's price.

Diesel fuel prices have been slower to fall than regular gas prices. The average price across Iowa for diesel fuel was $3.89 per gallon on Thursday, compared to $4.05 per gallon on May 16.

The price of natural gas was up sharply from May's price, according to the report. Natural gas closed at $4.72 per decatherm on June 15, up 11.2 percent from $4.25 per decatherm a month earlier.