Seeing is Believing: Gas Prices are Dropping

Gas Price Chart, Gas Prices are Dropping

This chart from AAA shows the top ten states with the highest average gas prices.

Of course, gasoline prices are still very high in regional parts of the world.

By Dan Deary, posted in Phoenix truck painting on February 21, 2013

Drivers….Start your engines! We have some great news for you and your wallet. Gas prices are on the drop! The average cost of filling up your tank in 2012 was $3.63; however, it will drop from that to $3.55 in 2013 and ultimately to $3.39 per gallon in 2014. Gas prices are still on the high end as far as right now but, why the drop in prices you ask? The answer is simple, as oil prices fall and production concerns are resolved, the price of gas drops. The high costs of gasoline and oil can be caused by conflict in the Middle East, making the oil prices surge or weather conditions, such as hurricanes, which decrease the refinery output. When Super Storm sandy occurred, it caused a regional decline for the price of gas for a few months. The main reasons for the high price tag on gas are refinery issues and the switch to summer blend gasoline. With tensions high such as in Libya in 2011 and Iran in 2012, it’s expected that the average national price of gasoline with slow and will peak during the spring at a lower price. EIA predicts the price for a gallon of diesel will fall to $3.92 in 2013 and $3.82 per gallon in 2014.

Of course, gasoline prices are still very high in regional parts of the world. According to the AAA, Hawaii faces the highest price of gas, at $4.24 a gallon. The Mountain states, such as California saw the largest price increases last week. The average gasoline price in Nevada went up 18 cents since last week. Colorado was 15 cents higher and Arizona was 14 cents higher. Utah increased up to 12 cents.

Oil prices will also be taking a more affordable turn around. The U.S. Energy Information Administration concluded the average price if Brent crude oil in 2013 will be $109 per barrel and $101 per barrel in 2014. To wrap it up, it’s important to realize the price may be high now, but good things come to those who wait, lower gas prices are on their way.

For fleet companies this is fantastic news as their profit can be made or broken depending on fuel cost, this is welcomed news.

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