South Dakota Gasoline Prices move downward

As the summer travel months are fast approaching, part of the travel plans involve knowing how gasoline prices can affect the date and the place to go. With the rise and fall of prices in the past weeks, several drivers do not know what to expect in the coming months.

Gasoline prices seem to change every day. However, in South Dakota, several drivers notice a declining trend. According to January Koller Brown of Sioux Falls, he noticed gasoline prices drop by around 15 to 20 cents in the past weeks, and that slight decrease is already saving him money; that is why he says that it would be great if gas prices continue to fall.

Jim Peters of Dell Rapids also said that it would be better if the current price of $3.47 further declines to $3 per gallon, even if it is somehow impossible.

There are several factors, both international and domestic that caused the latest decline in gas prices. These include a weaker than anticipated job market in the United States, which leads people to avoid travel. In the international aspect, the weakening economy of China and the easing Iranian tensions have also affected the prices.

AAA’s Rob Angerhofer said that since there is a risk premium embedded in the current crude oil price amounting to $20 to $30 per barrel, accounts of the easing tensions with Iran and several nations of that region suggest the price has room to decline further.

As drivers have witnessed a recent decline in crude oil prices, they are anticipated to increase as the summer driving season approaches. However, the AAA said that prices will not reach more than $4 per gallon.

Angerhofer said that it is unlikely for gasoline prices to reach $5 this summer, as the $4 prediction is now the worst-case scenario. That is what drivers particularly want to hear as they prepare their travel plans for the summer season.

Peters said that he could not imagine gasoline prices reaching up to $5 per gallon because even the $4 price is already too high. In case the $4 mark is reached, he said that it would be time for him to stay home.

Koller-Brown said that a fall in gasoline prices is good, especially as he only has one day off weekly, because he can drive to work in the remaining days of the week without worrying that he is paying an extra dollar at the pump.

Even if prices may increase, drivers are glad that they do not have to pay too much and are happy to reduce their budgets for the summer.

By: Chris Termeer