Gas prices down 30 cents in month

Published 12:00 am Thursday, May 10, 2012


Gasoline prices likely won’t reach a record high this summer, thanks to a recent drop in the price of oil.

The federal government on Tuesday slashed its original forecast for the summer driving season to $3.79 a gallon.

That’s a decrease from the original estimate of $3.95. It is also below the summer of ‘08’s $3.80 average.

When gas prices soared 20 percent from January to early April, analysts began predicting Americans could pay as much as $5 per gallon this summer.

But crude oil has dropped nearly $8 per barrel since its April high, and retail gas prices have followed.

And the decrease in prediction is close to last year’s average of $3.71 a gallon from April to September.

Oil is down nearly 12 percent since peaking near $110 per barrel in February. As oil prices fall, it becomes cheaper for refineries to make gasoline and other fuels, and some of that savings eventually gets passed along in the form of cheaper pump prices.

Locally, gas prices have dropped 13 cents on average in a week and 30 cents on average in the last month. Wednesday’s average was $3.50 a gallon in Andalusia. Those figures are less than the average of $3.81 a gallon this time last year, but not a low as six months ago when average prices were $3.27 per gallon.

Gas is nearly 10 cents more on average in Opp with the average price being $3.59 per gallon, and 6 cents higher in Florala.