Local Gas Prices May Have Hit Bottom

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At an average of $1.65/g., the lowest since 2009, gas prices may have be nearing the bottom according to the gas price monitoring website GasBuddy.com.

Their daily survey of 139 gas outlets in Rockford shows a decline in prices of 6 cents over the past week.  They report the national average fell 2.5 cents to $1.80/g.  

Local gas prices are now 26.4 cents per gallon lower than a month ago, an average of nearly one cent per day, and a trend that cannot last much longer.

“February looks to start the month with gasoline prices averaging under $1.80/gallon nationally, the lowest level since January 16, 2009,” said Patrick DeHaan, GasBuddy.com senior petroleum analyst. “Crude oil prices have rebounded back above $30 per barrel in the last two weeks and with more talk of an organized cut in oil output between some of the world’s largest producers, there may be more upside potential in the future, should those talks pan out.”

“For now, due to a lag time from rising oil prices,  gasoline prices in many areas may continue to drift lower, but don’t be caught by surprise if in a few weeks they revert and move higher. Refiners have already begun some winter maintenance, and while supply of winter gasoline is abnormally high, once that inventory is liquidated, I fully expect gasoline prices to march higher,” DeHaan said.

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