Gasoline prices now NOT expected to hit $4 a gallon by Memorial Day

News

May 11th, 2012 by Ric Hanson

Triple-A predicted we’d see gasoline selling in Iowa at four dollars a gallon or higher by Memorial Day, but a new government report is forecasting much cheaper prices. The U-S Energy Information Administration now estimates the national average price this summer will be three-79, even lower in the Hawkeye State. Rose White, at Triple-A-Iowa, says pump prices have been steadily falling for weeks. “As this industry is, it’s very unpredictable, but certainly this latest news is welcome news for all motorists,” White says. “Oil prices are down about 9% in the last six days. In fact, for the last 23 days, retail pump prices have declined.” 

Iowa has one of the lowest gas prices in the country, averaging three-57 a gallon, about 18 cents below the national average. She says prices will still likely rise as the summer approaches, but not as high as they’d first thought. ”Based on what we’re seeing now, which is an improvement in supply levels and economic concerns that are driving down crude oil prices, the combination of factors certainly is reversing earlier projections,” White says. “Right now, we’re expecting prices to stay right at that $3.70 level for many of the summer months.”

Between January and April, gas prices nationwide rose a whopping 20-percent. Some politicians blame President Obama for the increase, but White says that’s not a legitimate claim. “It’s hard to put the blame on any one organization, industry or country, certainly not on one person,” White says. “It’s a global issue, based on supply and demand.” Oil prices have dropped about eight-dollars a barrel since early April. Iowa’s current average gas price of three-57 a gallon is down from three-92 a year ago.

(Matt Kelley/Radio Iowa)