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July 9, 2008

arrowGas prices dropping

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Average gas prices in Fresno are actually dropping — a whopping four cents since June 21. It’s not much, but any reversal in what seems like the never-ending climb of gas prices is welcome.

They may more drop more in the near future since crude oil dropped $6 a barrel Tuesday. Any drop this time of year is surprising because gas prices typically rise around holidays when more people drive and increase demand. Maybe more people staying home over July 4 made a difference.

Wednesday’s average price for Fresno was $4.59, down from the all time record of $4.63 set in June. Average prices in the Tulare-Porterville-Visalia area are also down four cents to $4.62.

But don’t celebrate yet.

Gas prices typically rise faster than they fall as gas station owners make up for thin profits when prices are high. This study says consumers are partly to blame for prices not falling faster because they stop shopping around, meaning less incentive for lower prices. And for the long term, worldwide demand for oil is expected to stay high and that means higher prices for you.



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