Gas Prices Drop For Now

Gas prices have fallen over the past two weeks, continuing their slide despite an increase in crude oil prices, according to a survey published Sunday. The average price of regular gasoline is $3.29 a gallon, the Lundberg Survey found. That’s down 9 cents from two weeks earlier, and down a total of 18 cents over the past six weeks, said publisher Trilby Lundberg.

While crude oil prices rose $3.55 a barrel over the past two weeks, gas prices fell due to “shrinkage in the profit margins of the downstream portion of the oil industry — that is, refiners and retailers,” Lundberg said. “They were unable to pass through the higher oil prices because American motorists’ demand for gasoline continues to shrink due to hard economic conditions.” However, it’s unlikely prices will continue to fall, Lundberg said., because refiners and retailers “will not be able to sustain losses on and on.” “It will all depend on what crude oil does,” she added. The latest average gas price is 38 cents higher than it was a year ago. For more information check out the full article at CNN.com 

Better fill up soon, Gas Prices on the rise again!

Gas prices in the United States are on the rise, with a 6 cent increase per gallon in 1 day!  Why do we see this sudden increase?  Some say it is due to the Libyan leader Moammar Gadhafi’s threat to destroy his country’s oil fields.  This threat is driving the price of crude oil to $100 per barrel, which hasn’t reached that level since 2008.  Since it has reached $100 per barrel for crude oil, we have seen a big jump in the United States gas prices on land and in the air.  Airlines are also incurring the higher fuel cost by adding an extra fuel surcharge to most flights.  These surcharges add about $20 to a round trip within the US and much more for an international flight. Visit Kimberley Vassal Insurance to learn what we can do for you!