Fuel prices continue to cause many analysts to scratch their head...
Apr 10, 2013
Do realize this is the first time in 10-years that March gasoline prices have actually fallen. As of April 1st, the price of gas had fallen in 29 of the previous 33 days. On a national scale, gas prices are about $0.30 cents a gallon cheaper than last year at this time. AAA is now predicting the average price of gas in 2013 will actually be lower than 2012's average of $3.60 a gallon. What's a little concerning for "ethanol" is that Americans are driving less — about 2.7% less, according to Department of Transportation figures, or nearly 90 billion miles less after reaching a peak of more than 3 trillion miles back in November of 2007. In addition, older, less-fuel efficient cars are being replaced by new ones that get better gas mileage. Another reason for cheaper prices is that the US is actually producing a lot more crude oil here at home and refiners are finally starting to gain better access to the crude being produced up North. Look at it this way railroads her int he US hauled 233,800 carloads of crude in 2012, up from 65,800 in 2011 and just 29,600 in 2010. There is no question the availability of lower priced crude to refineries is going to help ease prices at the pump.
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