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Gas prices continue to drop, some areas below $3 a gallon

(Radio Iowa) – The average price of a gallon of gas dropped six cents in the latest survey from the Department of Agriculture.  Analyst Harold Hommes, says the increase driving from the summer season seemed to hang on a little longer than normal — delaying the normal fall drop in prices. “For the first time this week we’ve seen it drop off as we would have expected this time of year. So, we in effect are moving into a lower demand period with  more than adequate supplies,” Hommes says.

The average price for a gallon of unleaded gas was $3.28, but some areas have seen the price drop below the $3.00 mark. “The Mason City, Clear Lake area,” Hommes says, “as well as several stations in Council Bluffs have already reported in that 2.95, 2.96 range.”

Other factors figuring into the pump price are: international tensions have eased and the price of oil has been dropping. “We’ve lost almost 10 bucks on the crude side and I look for that to fall further. So, clearly the cycle if fundamentally pulling us down,” Hommes explains.

That downward trend could keep prices below the $3.00-a-gallon mark for awhile. “I would look for it to be certainly through the fall,” Hommes says. “That would not include those opportunities for marketers to take advantage of holiday seasons. I think we could certainly expect modest bumps at Thanksgiving and Christmas. But I think through the end of the year we’re going to be looking at either sub or right around that $3 mark.”

The national average for a gallon of gas was $3.35, which was down four cents.