Expert: Gas Prices Dropping Like A Rock
Analyst Says Prices Could Go To $3.50 A Gallon By Labor Day
Reporting
Susan Carlson CHICAGO (CBS) ― Finally, there's some good news about gas prices. They've dropped nationwide by about a nickel, and as CBS 2's Susan Carlson reports, analysts are predicting even bigger drops through the rest of the summer.
For the first time in awhile, drivers can fill up at the pump without a pained expression.
"We saw a substantial drop in the price of crude oil, which it appears gas station owners were in a hurry to pass on to consumers," said Phill Flynn, Vice President an Senior Market Analyst at Alaron Trading.
AAA reports gas prices in the Chicago area are averaging $4.25 a gallon Wednesday. That's down from $4.27 Tuesday, and $4.33 last Friday.
"So often we hear gas prices rise like a rocket and drop like a feather, this time, they're starting to drop like a rock and that's a good thing," Flynn said.
That's partly because demand is down about 4 percent from where it usually is. Many people have put the brakes on driving this summer because it costs too much.
The promise of a bargain has many people flocking over the border. At a gas station on Indianapolis Boulevard in Hammond, Ind., CBS 2 found gas for just $3.75 a gallon.
"I rehab houses in the area, Gary and so forth, so it's worth the while to drive over from Crete," said Troy Brown.
Customers are pouring into Luke's Gas Station from the south suburbs and other parts of Indiana.
"I'm just over in Highland, a few miles away, and as soon as you cross over into Hammond, the gas is at least 10 cents cheaper," Suzanne Stinnett said.
But soon, you may not have to go as far as Hammond to get a good deal. Analysts say right now, gas prices are on track to keep plummeting through the end of the summer.
"We could see $3.70 in the city and if we get really lucky, maybe $3.50 by Labor Day," Flynn said.
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