Minden Press-Herald

Thursday
Oct 02nd

Inventory behind gas price dip

Commuters are enjoying a dip in gasoline prices. Spokesman Don Redman with AAA in Metairie said the dip below $3 per gallon reflects the current state of supply and demand.

"This is the time of the year where there usually is a slowdown for prices of gasoline," he said. "We also have a healthy inventory of gasoline. So you're seeing a situation where there is a strong supply and less demand."

The last time gas was less than $3 a gallon here was in July.

Redman said most countries in the world are currently seeing a slowdown in their economies, and that is impacting the price of fuel.

How far prices may dip over the winter, Redman said, is difficult to predict.

"We usually don't make forecasts for the future because it's a very volatile market," he said.

"Based on what we're looking at now, we could see prices drop 10-20 cents a gallon between now and the end of the year. In other areas of the nation they may see closer to the 20 cent decline."

While the lower prices may seem like traveling will be a bargain this holiday season, Redman said the price of fuel usually is not the determining factor on if someone is going to travel or not.

"It's usually more about their personal financial situation," he said. "Higher prices have a dramatic negative impact on the family budget, but this may free up more money for travel over the holidays."

 

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