Gas prices come tumbling down

COEUR d'ALENE — Judy Jones savored the moment. The Post Falls woman filled her car with gas on Tuesday in Coeur d'Alene, where the average is $1.87 per gallon — 15 cents lower than a month ago.

"I'm really liking these prices," she said. "They seem too good to be true."

Too good to last too long at least, according to AAA.

"The lowest prices of the year are likely showing up now," said Dave Carlson, AAA Idaho spokesman. "We’ll see some bumps at the pump this spring."

The price at some local stations has dipped into the $1.70 range. The price was $1.70 at the Fighting Creek Market on Monday.

The nation's average is $1.83 — the lowest it has been in six years.

Idaho's price has dropped as well — just not as fast as the nation's — and is at $2.03.

"North Idaho gas prices will likely continue to run 6 to 10 cents lower than the average Idaho prices, drawing from a healthier supply of gasoline in the region," Carlson said. "Not all communities in North Idaho get the same benefit, but overall, prices in the region are lower than other parts of the state, particularly southwest Idaho."

Overabundant oil means low pump prices overall will be around again this year, Carlson said.

"Idaho’s average price of $2.51 for 2015 is within a range that AAA expects will be around for the state this year," Carlson said. "Given the 7-cent gas tax increase this year, we think Idaho’s average price will probably run in a range of $2.30 to $2.50 for the year."

Carlson said the highest prices will likely occur during the summer travel season, June through August.

The U.S. average price for gas has been $2 or less for 27 consecutive days and could head lower still due to reduced seasonal demand and falling crude oil prices.

"Global oversupply, weak seasonal demand, and the anticipation that even more oil will enter the marketplace — via the lifting of sanctions on Iran — are feeding a 'lower-for-longer' sentiment among speculators," Carlson said.

"We assumed the bottom of the gas price slide would have occurred by now, but the market may need sharp adjustments in supply to bring the crude oil market more into balance."

A two-day rally in oil prices last week got some bearish response again on Monday as crude oil dropped below $30 a barrel again before closing at $30.34. The last time the price was in the low $30 range was December 2003 when Idaho’s average price for a gallon of regular gas was about $1.60.

Coeur d'Alene's average of $1.87 on Tuesday was the lowest price among seven major cities in the state on Tuesday. The highest city was Nampa at $2.06.