Recent drops in gas prices have fueled hopes that vacationers will be spared predicted summer increases, but experts are not sure whether the declines will continue.
Nationally, prices at the pump fell a penny to $3.04 on Tuesday, the second straight decrease after prices jumped a dime in less than two weeks. The average price in the Washington region remained at $2.97, but “that reprieve may not last long,” AAA spokesman John Townsend said.
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A federal government report showing increased oil inventories and announcements that several Midwestern refineries soon will resume operations sparked the recent price drop, but high demand domestically could see prices climbing again. The first 10 days of August represent the year’s busiest driving time, according to AAA, as families go on vacation before their children return to school later that month.
Another factor might trump the high demand, however. Oil prices play the largest role in determining how much drivers pay to fill their tanks, according to the American Petroleum Institute.
During the recent 10-day increase in gas prices, the cost of oil grew to more than $75 per barrel. By Tuesday, however, oil futures had dipped to $74.02. In another good sign for consumers, gasoline futures have shrunk 25 cents in the past five days.
“It is possible we have peaked out for the season,” said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.
Information from The Associated Press was used in this report.
