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Gas Prices Begin Their Descent

Gas prices have been rising significantly over the last couple of years. When prices hit the $1.50/gallon mark drivers around the US were horrified and certain that they would soon fall once more. However, this did not happen, at least not in the long term, as prices continued to edge their way to the $2 mark and beyond. But it is possible that these astronomical prices are on their way down for good? Gas prices have dropped an average of six cents a gallon over the past two weeks.

But the Lundberg Survey says they`re still about 33 cents higher than last year. Analyst Trilby Lundberg says chances are good prices will surge again. Self-serve regular averages $2.24 per gallon nationwide. Lundberg cited several reasons for an expected surge in gasoline prices, including new regulations this year calling for more expensive ethanol to replace a cheaper additive, and the need for more refining capacity to go off-line for pre-summer maintenance.

She added that concern in the market over potential international treats to the oil supply in nations such as Iran, Iraq and Nigeria could keep crude oil prices high.At $2.59 a gallon, Honolulu, Hawaii, had the nation`s highest average price for self-serve, regular unleaded gas, according to the February 24, survey. Portland, Oregon, had the survey`s lowest price, dipping below the $2 per-gallon barrier to $1.99.