By Associated Press
Updated at 7:50 p.m. ET: Gasoline prices likely won’t set any records this summer, thanks to a recent drop in the price of oil.
The government Tuesday slashed its forecast for average gas prices to $3.79 per gallon for the summer driving season. That’s down from an initial estimate of $3.95 and below 2008’s record average of $3.80.
The Energy Information Administration’s revised forecast is encouraging news for the economy. Some economists blame high pump prices for so-so consumer spending this year. They were also seen as a factor in the loss of 35,000 retail jobs in February and March.
Gasoline prices soared 20 percent from January to early April.
A few analysts warned drivers they could pay as much as $5 this summer, eclipsing the 2008 record of $4.11 per gallon.