Getting Answers: prediction of fall gas prices
SPRINGFIELD, MA (WGGB/WSHM) - Our Western Mass News team noticed a significant drop in gas prices, so we’re getting answers on what we can expect to see at the pump as fall approaches.
“It’s a roller coaster,” said gas industry consultant Bob Bolduc.
Pain at the pump is beginning to ease. For the first time since February, prices have dropped below $4 a gallon. The average gas price in Massachusetts, as of Wednesday, sat at $3.89 a gallon. That’s $1.15 lower than at the height in mid-June and the national average is $3.76 a gallon, which is $1.25 lower than the height in June.
Western Mass News spoke with AAA Northeast spokesperson Mary Maguire, who told us gas prices are still higher than they were this time last year, but we are closing the gap. She told us part of the reason for the drop in prices is a decrease in demand as vacation season comes to a close.
“Come September, we typically see people starting to nest again…Labor Day weekend is kind of the last gasp for travel,” Maguire noted.
She said that a decrease in the price of crude oil also plays a role, which makes it hard to predict if costs will keep declining, especially with the cap on Russian oil and with peak hurricane season. However, Maguire said they are hopeful.
“So we’re optimistic we will continue to see the direction of gas prices heading downward in the coming month,” Maguire explained.
Buldoc said all businesses, including gas stations, need to keep a pretty steady margin and as the market goes up and down, the change in prices eventually gets passed down to the consumer.
“Some days, gas stations are making money. Some days, they’re losing money because they can’t either pass on or change the price as much as the world market changes every day,” Bolduc added.
As gas prices continue to rise and fall, Maguire encouraged drivers to continue shopping around for the best deal at the pump.
“Reward the most competitive retailers with your business. It saves you money, puts more money in your pocket, and puts downward pressure on the market for everyone because it compels other retailers to also lower their prices,” Maguire said.
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