Gas Prices Dropping, But May Go Back Up: Prices in Vermont Higher Than the National Avergage.

by Robert Maynard

Gas prices jumped sharply in the last couple of weeks in 2012, but some experts predicted a decline during 2013.  Here is a prediction from the January 2nd  edition of the Pittsburg Business Times:

Gasoline prices jumped nationwide in the last two weeks of 2012, and the year’s average price was the highest ever on record — but AAA doesn’t think it’ll stay that way.

The national average was $3.29 a gallon, up almost a nickel from a week ago, although still down a dime from a month ago when prices were falling. The prices have held steady since Dec. 31, according to AAA’s Daily Fuel Gauge Report.

It looks like the AAA’s prediction has come true as prices have experienced a decline since their spike in December of 2012.  A recent Fox 44 News article points out that:

Drivers are seeing some relief at the pumps.

AAA reports a gallon of regular gas is down half a cent.

That may not seem like a lot, but it’s the 11th consecutive decrease.

The agency says the national average is now about $3.65/gallon.

The Vermont average is $3.75, which is above the national average, but below places like California, Alaska and Hawaii.  This relief, while welcome, is expected to be short lived: indicates that gas prices are falling. senior petroleum analyst Patrick DeHaan, however, urges caution.

“The recent decline in the U.S. national average has been most welcome and I’m sure much appreciated by motorists. However, the national average could turn around in the week ahead as production of refined products drop and supplies grow tighter,” he wrote in the blog.

“There’s ominous news on the horizon, however. Oil prices made advances late last week, and wholesale gasoline prices followed higher. This may give shape to a new upward trend in gasoline prices over the next few days, with gas stations in the Great Lakes states perhaps hiking first – with some hikes perhaps starting today or tomorrow. The future of gasoline prices looks okay when comparing it to a year ago, but I do expect the gap between last year’s higher prices and today’s prices to close slightly over the next few weeks.”