Gasoline Prices Take a Downward Turn, AAA Reports

NEWS from AAA South Dakota, Jan. 13 – According to AAA’s Fuel Gauge Report, the nationwide average price for self-serve regular gasoline fell yesterday for the first time in nearly two weeks, dropping 0.02 cents to $1.79 per gallon. Today’s price average remains unchanged from that.

This barely perceptible dip in the average price of gasoline follows a huge sell-off in the oil futures price since last week in which the cost of crude oil dropped from $48 per barrel on January 5 to under $40 per barrel today.

In South Dakota, AAA reports the statewide average for self-serve regular stands at $1.79 today, down 6 cents from last Friday.

“Seasonal demand for gasoline is at its lowest point of the year right now,” said Mark Madeja, spokesman for AAA South Dakota. “The damage done to demand for gasoline by the economic calamities of the past year really does not support a sustained rally in gas prices.”

AAA advises motorists to shop aggressively with their steering wheel or online at www.AAA.com (News & Safety; Fuel News & Tools) for the lowest fuel prices. Fuel station owners may have overreached themselves with the price increases of the last week.

“While higher fuel prices may become sustainable later this spring – especially as refiners continue to cut back on gasoline production – currently healthy fuel inventories coupled with negative trends in retail sales, corporate profits, housing and employment point toward lower, not higher gasoline prices at this time,” said Madeja.

The AAA Fuel Gauge Report electronically surveys 100,000 gasoline stations daily. Prices can be viewed at www.aaafuelgaugereport.com.