Happy Fourth: Gas prices dip as summer unfolds
Ben Mathew, of Coeur d’Alene, fills up his truck with gas at the Mobil 1 stop at the end of Sherman Avenue Tuesday morning. Local gas prices have dropped 30 cents from a month ago and AAA expects prices to level off soon. (LOREN BENOIT/Press)
Customers fill up their vehicles with gas at the Northwest Boulevard Chevron Tuesday morning. (LOREN BENOIT/Press)
Cd'A's average has dropped 30 cents in the past month
By BRIAN WALKER
Staff Writer
COEUR d'ALENE — Motorists have reason to celebrate heading into the Fourth of July holiday.
The average price for a gallon of regular gas in Coeur d'Alene has dropped 30 cents from a month ago to $2.74 on Tuesday, according to AAA Idaho. A year ago at this time, the average was $3.11.
The decrease is not the norm heading into the holiday, said Matthew Conde, AAA Idaho spokesman.
"We would expect gas prices to climb throughout June in a typical year," he said. "It is highly unusual for gasoline stocks to keep pace with demand for as long as they have, especially given the record- or near-record demand we’ve seen for every major holiday over the past few years."
Coeur d'Alene's average is 2 cents higher than the Post Falls average and a penny above the nationwide average of $2.73. Still, it’s a bargain compared to the state’s average of $3 a gallon.
Post Falls resident Tara Davis, who filled up in Coeur d'Alene on Tuesday, said the gas price relief is appreciated by her family.
"We're getting ready to head to the Midwest for vacation, so we don't mind it one bit," she said. "I'm cautiously optimistic, though, because they'll probably start to increase later this summer."
AAA agrees.
"We would expect gas prices to level off soon, and they could bump 10 or 15 cents higher before Labor Day in response to peak travel demand over the summer months," Conde said. "Gasoline stocks are likely to decrease, and crude oil could follow suit. It all depends on the timing of when demand finally catches up with what has been a fairly robust fuel supply."
AAA predicts a record 263,000 Idahoans will hit the road for 50 miles or farther for the holiday.
In the Rockies region, a high refinery use rate has kept gasoline stocks ahead of the demand heading into the Fourth of July, Conde said.
"In North Idaho drivers have been able to reap the benefits of inexpensive Canadian crude oil in recent weeks, which has held prices there about a quarter cheaper than in other parts of the state," he said.
A year ago, Coeur d’Alene, Post Falls, and other cities in the area had average gas prices that were closer to the state average, but prices here dropped faster in the spring and into the summer.
Crude oil prices hovered between $57 and $59 per barrel for weeks due to continued speculation about a global oversupply of crude oil. But on Tuesday, oil prices were trending near $60 per barrel amid rumors that OPEC (Organization of the Petroleum Exporting Countries) will vote to maintain current production cuts for another six to nine months.
"On the domestic side, there’s some good news," Conde said. "The U.S. is close to becoming the No. 2 exporter in the world for crude oil, which might help offset the effect of OPEC’s action."