WASHINGTON– Unusually low gas prices are fueling doubts about the health of the global economy. But if you’ve filled up lately, you may not be complaining.
Industry analysts say prices at the pump will continue to decline as fall begins. Some places in the nation are already paying less that two dollars a gallon. Phil Flynn, an analyst with The Price Group, says we could likely see that in the D.C. metro area.
“We’re in a new era of low gasoline prices. We’re seeing refiners in the U.S. produce record amounts of gasoline and the global demand has been falling. It’s really the perfect combination for gas prices to plummet.”
He believes prices will dip below two dollars a gallon by Thanksgiving, even in D.C.
Flynn says even with summer blends and refinery maintenance keeping prices up, cost per gallon will continue to go down.
“Once that turnaround is done and we move to wintertime blends in a few months, you’re going to see those downward trends continue.”
The expected general trend for all gasoline prices, including premium, is that they’ll go down. While it is having a positive effect on household budgets, Flynn warns, this isn’t a real cause for celebration.
“Part of the reason why prices are plummeting right now is because we are concerned about a global economic slowdown. It’s not an entirely feel-good story.”
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