Wednesday, August 29, 2007

US gas prices at the pump not going down much anytime soon

According to the US government agency in charge of keeping track of such things, as of this week
Apparently, prices have gone down recently: "The average retail gasoline price is down 47 cents per gallon since its peak the week before Memorial Day"...but "with gasoline demand set to fall significantly after Labor Day, the low level of inventories is not likely to cause a sharp spike in retail prices, but more likely will limit the usual seasonal decline seen after Labor Day, with the possibility remaining of an atypical slight increase over the next few weeks."

Gasoline prices in the US didn't keep up with inflation for many years; and it was uneconomic for oil companies to build new refineries as a result. As a result, we can expect that the days of gasoline for less than $2 per gallon are gone for a long time.

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