Gas prices continue to drop

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POSTED: Monday, March 11, 2013 - 4:26pm

UPDATED: Friday, March 22, 2013 - 11:58am

We've seen them go up, we've seen them go down, but now gas prices are down once again.
This drop is thanks to moderating crude oil prices, which is giving drivers a break at the pump.

Jessica Salinas lives in McAllen and says she is pleased that gas prices are going down.  Salinas says,  "I'm just so glad that gas prices are finally going down after they were so ridiculously high, I just hope they keep going down."

Pump prices fell slightly over the weekend, the nationwide average for a gallon of gas is $3.70, down 9 cents from a year ago.  Here locally average gas prices are at about $3.46 per gallon for regular fuel.  The drop is just in time for spring break travelers to hit the road.

However, for some travelers, because gas prices are so unpredictable they say they stick to fuel efficient cars as a means to save money.  Clarissa Meyers drives frequently and she says, "My husband and I prefer to drive our Prius all over town and even out of town, because it is very economical and the gas prices are so unpredictable."

So what's the reasoning behind gas prices?  Well, besides crude oil prices and the dependency of refineries, analysts say demand plays a big role. Dr. Salvador Contreras is a Finance Professor at UTPA.  Contreras says, "Gasoline tends to go up and down depending on market conditions, so some of these factors are like expectations on future demands for gasoline."

So, that's why it's common to see gas prices spike during the summer or major holidays,
since it's a time when the demand for gas is high, because motorists travel extensively during these periods.

While many drivers are breathing a sigh of relief from the drop in fuel prices, analysts say the dip in gas prices is only temporary and that prices will to rise especially as we get closer to summer.
And for drivers, it's a hard hit, especially since it's a time when they travel the most.

 

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