We've heard it a million times: What's good for General Motors is good for America. Well, if low gas prices are good for America (and that is a debatable point), then Charles Wilson's saying does not work the other way around. According to USA Today, the U.S. Energy Information Administration is predicting that gasoline prices will hover around $2.23-$2.42 between now and the end of 2010, with a summer high of just $2.30 this year.
Why does GM care about this? Because they need higher prices to make their forthcoming Chevrolet Volt extended-range plug-in more appealing. GM has already admitted that the Volt's price tag will be connected to the price of gas when the plug-in car goes on sale at the end of 2010. Before he was booted, then-CEO Rick Wagoner said that $4 gallons were not the worst idea.
Why does the EIA think that $3 gasoline isn't on the horizon any time soon? Because of low demand and low global crude prices. The weak economy and surplus oil production capacity don't help one bit, either. Diesel fans could feel like winners, though: the EIA thinks that diesel prices might soon drop below gasoline for the first time in two years.