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Pack the Car: Cheaper Gas Prices On the Way

Drivers can expect to see more favorable prices at the pump for the rest of the summer.

The International Energy Agency announced that it plans to release 60 million barrels of oil from its emergency stocks over the next 30 days. That decision, made to counterbalance losses from supply disruptions in Libya, pushed crude-oil futures down about $5 to $90 a barrel Thursday morning.


Consumers have already seen a little relief in gas prices this month as the Greek debt crisis and uncertainties about the U.S. economy pushed crude prices lower, says Ben Brockwell, a director for the Oil Price Information Service. The national average for a gallon of regular unleaded has dropped steadily over the past month, from $3.83 to a current average of $3.61, according to AAA’s Daily Fuel Gauge Report. “The IAE’s decision means a more forceful, quicker descent for oil,” he says. “You’ll see this converted quickly into savings at the pump.”

It’s unclear just how much more drivers can expect to save, but because the release is meant to supplement an expected shortfall, the drop of a few cents is likely to be short-lived, says Avery Ash, the manager of regulatory affairs for AAA. Prices are likely to hover at the lower end of the $3.25 to $3.75 range already predicted for the summer, he says.

Consumers could see savings in other places, too, as the effect of cheaper gas trickles through the supply chain, Brockwell says. Although it’s unlikely that prices will drop on say, food or clothing, fuel surcharges may be lessened and companies may be able to put off expected price hikes.


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    • Am I the only one who feels that there is a large amount of price gogiung going on. The taking advantage of the fact that we have no say on how much we use,, we dont make the cars,,and thoiugh we try to avoid thelong drives,,and traffic,,we are still expected to bare the cost, and responsibility. We all know that expecting thegovernment to actually do,,or even say anything that would upset the fuel providers is rediculous,,their revenueis only benifited by the fact the price goes up. The government do something to reduce,,or control their ownincome,,fat chance. This whole thing is nothing but profiteering,,,using any and all outlandish excuses toraise prices,,,

    • No savings at the pump in my area. When prices go up, gas at the pump goes up, and when the price of crude drops, prices at the pump don’t go down?

    • If you want see how much your next road trip will cost based on current gas prices check out http://www.cost2drive.com – it not only determines the cost of the trip based on real time gas prices along the route but also locates the cheapest gas at refueling points along the way. And for routes over 200 miles it will show the cheapest airfare so you can see if its cheaper to drive or fly to your destination.

    • Now maybe Prez Zero can get reelected

About Pay Dirt

  • Pay Dirt examines the millions of consumer decisions Americans make every day: What to buy, how much to pay, whether to rave or complain. Lead written by Quentin Fottrell, the blog examines these interactions, providing readers with news, insight and tips on shopping, spending, customer service, and companies that do right – and wrong – by their customers. Send items, questions and comments to quentin.fottrell@dowjones.com or tweet @SMPayDirt.