Analysts see relief from rising gas prices

Tuesday afternoon Jon Lunceford filled up his GMC truck at $2.57 per gallon, a bargain for the resident of Carbondale, Ill., where gas prices are 25 cents higher than Cape Girardeau.

"I'm happy it's cheaper but still shocked by how much it's gone up in the past few months," said Lunceford as he was filling up his vehicle at the Rhodes 101 convenience store at South Sprigg Street and Highway 74 in Cape Girardeau. "I'm a little bitter, but it's still cheaper than the prices we were paying this time last year."

The price of a regular gallon of gasoline continued its upward climb Tuesday, but analysts say relief is in sight for motorists like Lunceford, just in time for the summer travel season.

Motorists paid about $2.50 for gasoline in Missouri on Tuesday, 18 cents lower than the national average, according to a daily fuel gauge report by AAA. Gasoline prices averaged $2.81 in Illinois. A month ago the national average was $2.41. Gas reached around $1.61 in early December but has risen since.

Gasoline could be found for as low as $2.48 in Jackson on Tuesday, according to gasbuddy.com.

AAA Missouri spokesman Mike Right said a decrease could come because of a decline in wholesale fuel costs and oil futures being at their lowest in three weeks.

Right said not to look for that to affect prices now but possibly next week.

"The price of wholesale gas and oil are both positive signs of what the public will save at the pump eventually," Right said. "We'll have to keep an eye on it to see if the trend holds up."

He said motorists should not get too excited.

"They should celebrate temporarily," Right said. "I don't know if anyone knows what will happen in the summer months. If we see recent trends continue, motorists should see a decrease at the pump."

The speculation in the drop of gasoline prices comes at a time of election protests against the Iranian government. While some media reports have raised the question of that having an effect on oil prices, local economists and political analysts disagree.

"Iran is very dependent upon oil revenue and will be sure to keep production at current levels to keep the money flowing in," said Dr. Bruce Domazlicky, an economics professor at Southeast Missouri State University.

Dr. Russell D. Renka, a political science professor at Southeast, thinks that such fear is a way to raise prices in crude oil and gasoline prices at home.

"The country will float rumors of trouble and watch to see if oil rises," Renka said. "If it does, they'll float more such rumors. But meanwhile, I seriously doubt that this upheaval will shut down Iran's oil production or its exports. There's no interest by the protesters to see something like that. It's not about oil, it's about the theft of a presidential election by the regime and its clerics."

For those hoping to save at the pump, Right offered advice such as reducing speed from 75 to 65 miles per hour on the interstate, which can save 10 percent on fuel use. He also suggested motorists properly inflate their tires.

"There are an awful lot of tires underinflated, so consequently that's robbing your car of fuel economy," Right said. "People need to practice common sense in order to stretch their dollar the most, especially with the July Fourth travel holiday approaching."

bblackwell@semissourian.com

388-3628