Analyst Predicts Continued Drop in Gas Prices
Some parts of the country could be paying less than $2.00 for a gallon of gas by the end of the year.
That's the prediction of Jeff Pelton, a senior petroleum analyst with GasBuddy.com
"We'll be looking at prices at the pump stalling 10 to 12 cents a month starting in September and continuing through the New Year. We're talking about coming into Christmas with a national price average of probably $2.09," he said.
In Rochester today, a gallon of gas averages $2.60, but GasBuddy.com is reporting prices as low as $2.30.
Pelton says fracking operations in North Dakota have resulted in an oversupply of crude oil, which is driving prices down.
He said Rochester also benefits from the presence of gas retailers such as Delta Sonic, Kwik Fill and Hess, who offer lower prices at the pump to try to lure people into their stores, where profit margins on merchandise are much higher.
Those relatively low gas prices create a pricing war among retailers, reflected in the wide range of prices locally.