Retail Gas prices fall despite recent rise in crude oil

The retail gasoline prices declined by 5 cents on an average for the week ended April 10. The refineries are currently holding massive inventory and despite rise in crude oil prices, the retail gas prices have remained low across the United States.

In the Lundberg Survey, the data collected from 2,500 filling stations has indicated that the gas prices are on an average $1.16 lower compared to the same period last year. The lower gas prices have reduced the energy bills for millions of Americans.

Economists feel that with savings in energy costs, American consumer sentiment will remain strong as they will have more money to spend on other products. After reaching its recent peak of $2.538 per gallon during the week ended March 6, gas prices have declined thrice.

Trilby Lundberg, the president of Lundberg Survey said, “The surging gasoline demand is encouraging refiners and retailers to cut price whenever they can in order to chase sales.”

Lundberg survey found average price of $3.09 in Los Angeles and $2.52 in New York City. Motorists in San Francisco were among the customers paying the highest for gas at $3.13 per gallon. In Charleston, South Carolina, customers paid $2.1 for a gallon on average.

According to EIA, the gasoline inventories have touched 229.9 million barrels. With the refineries reaching over 90 percent of their storage capacity, the gas prices are expected to remain low. Last week, WTI Crude ended at $51.64 per barrel.