


http://www.azcentral.com
Gas price expected to drop
Ken Alltucker
The Arizona Republic
May. 12, 2005 12:00 AM
Arizona motorists may see some relief at the pump by the end of May as the falling price of crude oil trickles down to gas stations across the Valley.
Arizona gasoline prices "will sag as much as a dime by Memorial Day," said David Cowley, public affairs manager for Arizona AAA.
"We're basing that on the (falling) price of crude oil. It usually takes about two weeks to work its way through the pipelines and see prices drop," he said.
A federal Energy Information Administration report released this week indicated that crude-oil supplies are at their highest levels since March 2002.
That has caused oil prices to drop from an all-time high of $58.25 in April to just above $50 a barrel.
The result has been a brief pause in this year's relentless march of rising gasoline prices. Some area gas stations already have trimmed prices by a penny or two in recent days.
A gallon of regular gasoline in Phoenix averaged $2.37 on Wednesday, down about one penny from the day before.
Still, that per-gallon price was 4 cents more than a month ago and 22 cents more than a year ago, according to AAA.
Area motorists say a small dip in summer gas prices will have little impact on their travel plans.
"When you factor in the costs of a vacation, the price of gas doesn't amount to much," Phoenix resident Terry Dake said Wednesday as he filled his truck at the Pasco station at Seventh and Roosevelt streets.
Dake, an attorney, says he lives just a mile from work so he doesn't have a long commute. But the price of gas is "still too high," he said.
While AAA forecasts some relief at the pump in coming weeks, officials said predicting gas prices is at best an inexact science.
Everything from global economic reports to regional supply problems can send the price at the pump skyrocketing.
"What's driving the market now is more speculation that fundamentals," Cowley said.
AAA is cautious in its forecast that gas prices will fall. That is because the prediction comes as summer driving season starts, typically a time when gas prices creep up as demand increases.
Now, many motorists seem resigned to the belief that gasoline prices will not dip below $2 a gallon.
"They always drop the price for a little bit, but they end up raising it again," said Robert Fallon of New Mexico, as he filled up at a Pasco station.
"I just don't drive when I'm done with work. I go home and stay there."