Gas Price Retreats

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Gas prices and futures indicate that the price of a gallon of regular based on the national average may never reach $4. As a matter of fact, the number may drop back to $3.50.

Gas futures recently fell from $3.40 at the start of April to $3.10. The carefully followed AAA Fuel Gauge also demonstrated an ongoing retreat. It showed that yesterday’s price was $3.830 down from $3.840 the day before, $3.891 a week ago, and $3.898 a month ago. Prices actually are close to matching the year ago price of $3.869.

The threat that gas prices could derail the recovery have started to recede as well. Gasoline use has also dropped dramatically which should put more downward pressure on prices.

Douglas A. McIntyre