Current Gasoline Prices Expected to Keep Falling until 2013

The prices of gasoline for this year have been in a roller coaster ride. The U.S. Department of Energy is about to release their most recent data on prices at the pump that is expected to show a continuous drop until Christmas Day.

Nationwide, drivers are looking at lower gasoline prices today after decreases of almost ten cents in the past month. In other regions in the country, the prices of gasoline have shed even more.

The falling current gasoline price trend is expected to continue until the New Year. A reduction of more than ten cents is even expected moving into 2013.

Gasoline prices today are dropping due to lower demand and very high supplies. Presently, gasoline inventories are in their highest level since May of last year.

As such, experts say that the present supply trend is expected to go on until the next spring season. Thus, the current gasoline prices should continue to drop for quite a while.

Despite the steady decline, the most recent prices at the pump are still higher compared to last year, by almost a nickel per gallon. Analysts even predict that the average price of gasoline this year will set a record high level of $3.60 per gallon, in spite of the fact that demand is at its lowest since 2001.

According to analysts, refinery issues contributed to the high year-wide average gasoline prices.

Prices could be affected by the “fiscal cliff” that is set to begin on January 1, 2013. In caseĀ  Congress decides to push through with the fiscal cliff, the country will be forced into another recession, gasoline demand would drop further and prices at the pump would most possibly decline as well.

By: Chris Termeer