Gas prices predicted to decline


Published: Monday, January 14, 2008 at 7:15 a.m.
Last Modified: Monday, January 14, 2008 at 7:15 a.m.

The apparent economic downturn in the United States may have an upside for

motorists.

Officials at AAA Auto Club South are predicting gas prices will begin to

drop because the slowing economy will cut demand for crude oil. Declining

prices were evident nationally over the last seven days as the average

price of a gallon of self-serve regular fell by three-cents a gallon to

$3.07. Average prices in Florida fell by a penny to $3.14 a gallon.

Over the past week, crude oil prices fell five percent. In the auto club's

weekly news release about gas prices, officials noted that the New York

based securities firm Goldman Sachs had determined the U.S., China and

Japan collectively consume 40-percent of the world's oil and the U.S. and

Japan are at risk of recession.

Any price declines may be short-term, though.

"While fuel prices historically decline at this time of year, production of

summer blended fuel is a process from February through May that always

pushes fuel prices sharply higher," said Randy Bly, director of community

relations for the auto club.

Regular, unleaded, self-serve fuel prices in Florida

Current $3.145

Week Ago $3.158

Month Ago $3.061

Year Ago $2.308

Source: AAA Auto Club

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