Low demand for gas causes drop in pump prices
Published: Monday, January 25, 2010 at 8:02 a.m.
Last Modified: Monday, January 25, 2010 at 8:02 a.m.
The law of supply and demand worked on gas prices over the past week, to the advantage of drivers nationwide. According to AAA, gasoline supplies rose while demand fell and that translated into a three to four cent drop in prices at the pump.
Average unleaded gas prices in Florida:
Week Ago $2.802
Month Ago $2.625
Year Ago $1.903
"We watched the price of crude oil steadily decrease throughout last week and the price of retail gasoline slowly follow suit," said Jessica Brady, AAA Public Relations Specialist. "It's very likely we will continue to see prices drop this week."
According to federal estimates, gasoline inventories increased by more than three million barrels. At the same time, demand fell 1.8 percent.
AAA'S ongoing analysis of prices at the pump showed they fell and average of three cents a gallon nationwide over the past week and an average of four cents a gallon in Florida.