Pain at the pump: Have gas prices peaked for 2013?

Posted 11/7/19

(USA TODAY)The pain at the gas pump that you've been feeling may not hurt as much the rest of the year.      After surging nearly 60 cents a gallon from late December to a recent peak of $3.79 on …

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Pain at the pump: Have gas prices peaked for 2013?

Posted

(USA TODAY)The pain at the gas pump that you've been feeling may not hurt as much the rest of the year.      After surging nearly 60 cents a gallon from late December to a recent peak of $3.79 on Feb. 27, prices have fallen for 25 of the past 29 days. Nationally, regular grade gas averages $3.65 a gallon — about 26 cents below year-ago levels. The month-long drop has come at a time when gasoline prices typically climb, prompting some industry forecasters to rethink early 2013 estimates of $4 a gallon or higher by the peak summer driving season. With the oil-rich Middle East relatively stable, U.S. refineries relatively problem-free, domestic production rising and consumers using less gasoline, prices may have peaked. Patrick DeHaan, senior petroleum analyst for price tracker GasBuddy.com, now expects average prices to peak at $3.64 to $3.69, versus the $3.95 he predicted in January. "I just don't see a run-up to $4 this year,'' DeHaan says. GasBuddy monitors prices in 166 cities. Prices have fallen in all of them. Relief at the pump could energize lackluster consumer spending, says Chris Christopher, director of consumer economics at IHS Global Insight. "Even though the amount people spend on gas is usually less than 5% of disposable income, gas prices have an undue influence on consumer mood," Christopher says. "And while it won't make up the difference in the expired payroll tax, it will help offset the impact and give people a bit more spending power." Have Fuel Prices Peaked for 2013?


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