Gasoline could drop 50 cts/gln by spring: AAA
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High U.S. gasoline prices and the threat of a recession have led to anemic motor fuel demand that could give drivers a break of 50 cents a gallon at the pump by the spring, according to motor club AAA on Wednesday.
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Local analysts said the jump in world oil prices, if sustained, could push up petrol prices another 42c/l in coming months, boosting inflation and slowing down spending in the economy.
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Gas prices nudged upward about half a penny in the last two weeks after dropping more than 20 cents since May 21, but another price spike is not expected due to a decline in crude oil prices, an industry analyst said Sunday.
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The average price for a gallon of  gasoline in the United States fell below $3 due to less demand  and slightly lower oil prices, and was likely to hold steady,  according to an industry analyst.
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U.S. drivers would pay a 50-cent tax on each gallon of gasoline they pump to encourage less fuel use and cut greenhouse gas emissions, under draft legislation to fight global warming released on Thursday.
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Oil prices charged toward $50 a barrel Monday as petroleum output in the Gulf of Mexico returns at a slower-than-expected rate in the aftermath of Hurricane Ivan and geopolitical unrest keeps traders on edge.
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The price of a gallon of regular gasoline has dropped 14 percent during the past month across the United States and in the Washington region to its lowest level since early spring, according to the AAA Mid-Atlantic automobile club.
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With oil near $50 a barrel, the Bush  administration is set to allow oil refineries to borrow from  the government's emergency petroleum stockpile to make up for  supplies disrupted by Hurricane Ivan, a congressional source  briefed on the pending decision told Reuters on Thursday.
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NEW YORK  The average price of a gallon of  gasoline fell 21 cents in the last two weeks.
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U.S. consumers will pay more for gasoline in the weeks ahead as fuel demand picks up going into the spring driving season, but a slowing economy may keep pump prices from rising as much as normal, energy experts said on Monday.
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WASHINGTON -- Oil futures retreated below $50 a barrel yesterday, though analysts said there is enough uncertainty about geopolitics and weather -- and the industry's ability to quickly boost crude output -- to keep prices from plummeting any time soon.
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The recent drop in prices at the pump could pick up steam, driving gasoline sharply lower in coming months, USA Today reported Wednesday.
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A Goldman Sachs announcement that it was reducing its largest commodity indexÂs weighting in gasoline futures may have helped the decline in gas prices.
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Oil prices hugged $50 a barrel on Wednesday on worries of potential supply disruptions and with US crude inventories expected to fall due to the lingering effects of Hurricane Ivan.
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The U.N. climate chief predicted Wednesday that the world will reach the goal of cutting greenhouse gases 50 percent by 2050 and said the U.S. economic slowdown should spur governments to take bolder action in confronting global warming.
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The average price for a gallon of gasoline in the United States fell below $3 due to less demand and slightly lower oil prices, and was likely to hold steady, according to an industry analyst.
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According to industry analyst Trilby Lundberg, the average combined national price for all grades of gasoline dropped to a $1.99 between Nov. 5 and Friday.