Gas prices averaged lower this year compared to 2011 around the Fourth of July.
The average gas price has fallen to an average of $3.36 according to AAA, compared to July of last year when gas prices averaged $3.73 per gallon.
Economic Analysis Director Tim Slaper says oil producers regulate their supply in such a way that prices fluctuate frequently. He estimates the price per barrel of oil is between $90 and $110. He says that translates to the upper $3.00 range when you go to fill up at the pump.
“Certain oil deposits’ production rate declines over time, so they’re looking at that trying to ‘sniff out’ whether or not there is indeed a looming shortage because they’ve seen such drops in the productivity of some of those deposits,” he says.
Slaper says its likely gasoline prices will remain stable over the summer and then drop in the fall.