April 24, 2014

Gas prices are decreasing as holidays near

Hoping for a holiday surprise at the pump. The price of gas continues to decline as we approach the holiday travel season.

As low as three bucks a gallon? Maybe. Gas prices dropped about 50 cents a gallon on average from September through early December.

AAA Wisconsin spokesperson Pam Moen says the auto club estimates the national average price of gasoline will slowly drop through the end of the year. There’s been indications of some significant declines. “Certainly can’t promise it but it’s not out of the question that we could see gas prices statewide start to flirt with going below that $3.00 a gallon mark, which is something we haven’t seen for about two years.”

Despite lower costs of gas, prices are at record highs for this time period. AAA does not expect gas prices to have a major impact on travel volume. Moen says, people will find a way to get together for the end-of-year-holidays regardless of gas prices. Still, she’s hoping for a holiday surprise at the pump. “We have ample supplies, fairly modest demand, and nothing really going on in the world that is putting upward pressure on gas prices.”

Moen hesitates to make predictions, saying everything could change without much notice. Natural disasters, unrest in the Middle East, refinery and distribution issues, and demand all can cause prices to hike up.

AAA estimates the national average price of gasoline will slowly drop through the end of the year, for an average between $3.20 and $3.40 a gallon by New Year’s Day. In Madison, some stations are selling gas for as low as $3.16 a gallon.

AUDIO: Jackie Johnson 1:27