Cost down for fueling up
In addition to mild winter weather, the good news just keeps coming for motorists as experts predict gas prices will continue their decline.
Jeffrey Pelton, an analyst with GasBuddy.com, a fuel-price reporting company, said this week, the massive amount of crude oil in the country is contributing to reduced fuel costs.
“Our expectation is the next six to eight weeks, prices should drop by 15 to 20 percent – possibly by the end of January,” Pelton said.
Although the country’s average price per gallon is down to around $2, it should have been even lower.
Many crude oil refineries conduct maintenance twice a year, which limits fuel production. Because maintenance in October lasted longer than expected, gas prices didn’t drop as much as they could have.
“Our refineries are in bad shape,” Pelton said. “As refineries age, maintenance seems to take longer and longer. … That hurts supply.”
Despite that, the national average is 41 cents cheaper than at this time last year.
Pelton said gas prices will spike in March – when refineries once again complete maintenance – and then dip again.
“The good news is we’re starting at much lower prices, so when we spike up, we’re already at lower prices,” he said. “Summer should see a price decline, once maintenance ends.”
The lowest gas prices in Washington Friday were $1.96 per gallon, Waynesburg’s were $2.14 and Donora’s were $2.06.
Those variations are due to local competitors, said Pelton, who previously worked as a pricing consultant for Speedway.
Areas like Washington have retailers willing to sell gas at lower prices in order to draw customers into their stores to purchase merchandise.
“They are willing to make next to nothing, and can lose money on gas … as a way to get people in the store,” he said.