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Gas Prices Fall Back Slightly
06/22/09 - 02:25 PM
Associated Press
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click for larger image Tallahassee, Fla:

Gas prices are dropping for the first time in more than 50 days, but don’t start celebrating just yet. It’s still unclear if prices at the pump have peaked.

The average price for a gallon of regular gas is $2.71 in Florida - down two-tenths of a cent from Sunday. It’s a meager decline, but the drop ends a 54-day run up in prices.

The average price has been trending upward in Florida and across the nation since last December when it bottomed out around $1.70 a gallon. Motorist Jackie Chambers says he thinks gas prices have been getting outrageous.

AAA attributes this latest decline to falling crude oil prices and a strengthening dollar. Crude oil prices have dropped in recent days to around $67 a barrel, while the dollar has gained some strength.

AAA spokeswoman Brenda Smith says a stronger dollar tends to put downward pressure on gas prices, but she says it’s too early to call this a trend.

“We need to remember, the dollar is very volatile. At any moment, it could start to weaken. If that happens, that will cause the price of the crude to go up and gasoline at the pumps to go up.

“We are hoping that this is an indicator that the prices of gasoline are starting to decline because we’ve had the first real break in 50 days.”

Jim Smith of the Florida Marketers and Convenience Store Association says gas prices are still higher than they should be because speculators are artificially inflating the price of crude oil. But he says now that Congress is examining their influence in the market, their impact may subside.

AAA reports the highest average gas price in Florida is in West Palm Beach at $2.80 a gallon. Pensacola has the lowest at $2.65 a gallon.

One year ago, gas prices were over $4 a gallon in Florida and they would continue climbing to an all-time high of $4.07 in July.

User Comments

Not great news but certainly good news that something is decreasing.

Posted by .(JavaScript must be enabled to view this email address)  on  06/23  at  08:04 AM
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