Summer Break For Gas Prices? Big Drop Expected By Memorial Day

LOS ANGELES (CBS) — An expected dip in gas prices could bring some welcome relief to your wallet ahead of the Memorial Day weekend later this month.

Gas prices on average have gone up $1.15 per gallon in the Los Angeles area over the last year, including an 11-cent jump in the last month.

But as KNX 1070’s Jon Baird reports, one oil industry analysts expects prices to begin to decline over the coming weeks.

“The price of oil is back below $100 a barrel, so that should mean that we should continue to see dramatic price falls when you pull up to the pump,” said oil industry analyst Phil Flynn.

Flynn predicts a drop of 15 cents a gallon before Memorial Day weekend, and up to 30 cents afterward.

The average price is a half-cent more than one week ago, 13.8 cents above what it was one month ago and $1.129 greater than it was one year ago, according to figures from the AAA and Oil Price Information Service.

Analysts estimate that a 50-cent drop in prices would save U.S. drivers a total of $189 million every day.

(©2010 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

Comments

One Comment

  1. Corrupt US Government says:

    High Gas prices is a result of Corrupt Politicians!!

    US Congress blocked the sale of Unocal 76 to China a few years back when Gas prices were under $2.00.

    China’s bid was $20 Billions for Unocal 76, US Congress blocked the sale allowing a lower bid Chevron to take it at $18 Billions!!

    If China took over Unocal 76 a few years ago, you’ld see a bunch of 99 cents & dollar tree Gas stations everywhere..

    Thank your US Government for Higher Gas prices!

    1. Mr . Time says:

      It’s ( NOT ) our American Governments ( FAULT. ) The fault belongs to the American Public . Because we got to have $ 30 to 65 thousand dollar cars / trucks .So be happy and Buy a ZENN American made electric car, and never worry about if you CAN pay $ 10.00 dollar’s a gallon at the nearest gas pump to you.

  2. Mojo says:

    I do not contest that our government is broken and in a mess, but the last thing the U.S. needs is for China to also control our gas. We’ve made China one of the wealthiest countries by giving away all our manufacturing and accepting loans. Someday China will own the U.S. and we’ll wonder how that happened.

  3. Go USA! says:

    Go China!
    Not!

    I’ll pay $5.00 for 9/10 of a gln before I want to see china own any more American companies or properties. Enough with the foreign countries buying our intrests.

    The fix is at home,
    Drill for oil and dig for coal at home, and do not buy foreign products.

    Buy American!

  4. Jerry M says:

    The moment there is an increase in the price of oil, or the slightest hint that there is a problem in the middle east the price of gas at the pump goes up.
    On the other hand it takes forever for the price to come down even when oil prices drop.
    Shell and Mobil and the rest of the gas and oil company’s are unAmerican and antiAmerica. They do nothing for the country only for themselves.
    Greedy little pigs.

  5. duh says:

    It’s never good news when big media predicts lower gas prices.. it always go further up.

  6. LMFAO @ People Complaining 'bout High Gas Prices says:

    Driving is a Privilege & not a Necessity!!! People should take Public transportation if they complain about gas prices.

  7. PlugIn says:

    Buy American Made ( ZENN ) electric station wagon; Fit’s a family of 5…Go to your Zenn dealer now while the PRICE is still $12,000…

  8. SAL G says:

    RIGHT BEFORE KATRINA THE GAS WAS $1.68 A GALLON AFTER KATRINA THE OIL COMPANIES SAID THAT SOME OF THEIR REFINERIES WERE DAMAGED AND SO THEY INCREASED THE PRICE UP TO ALMOST $5.00 A GALLON. WHEN THEY SAW HOW EASY IT WAS AND HOW LITTLE BACK LASH THEY GOT THEY STARTED TO US ANY EXCUSE TO RAISE THE PRICE. THE PRESIDENT SHOULD FLOOD THE MARKET WITH OIL FROM OUR OIL RESERVES ANNOUNCE IT AND KEEP THE PRICE AT $2.00 FOR THE WHOLE SUMMER THIS WOULD GET THE ECONOMY GOING!

  9. James says:

    its interesting that the price of oil is under $100 per barrel yet the drop in gas will only goes as far as $3.00 per gallon. The funny part is that everyone will settle for it. When oil was under $100 gas was that $2.50. Public transportation and carpooling is key to have prices keep dropping. Stop making excuses why we need to drive the car.

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