Gas Prices Still Falling in Austin
By Chip Skambis
The price at the gas pump has been going down for the last several weeks. In Austin, the average price of a gallon of unleaded is $3.35, down almost six cents this week alone, although cheaper gas can be found elsewhere.
Tom Kloza, chief analyst at the Oil Price Information Service, says the cost is falling to match prices on the wholesale market.
“Despite what the public thinks, wholesale decreases do lead to decreases at the pump, and we’re continuing to see that,” Kloza said. “We’re also seeing weakness in global and, in particular, domestic crude oil as a lot of new crude comes on.”
The lower prices haven’t lead to people buying more gas. And according to new consumer spending data, those savings aren’t spurring an increase in retail sales either.
Analysts say that might change if prices stay low.
But will they? Kloza says gas prices should continue to go down through the rest of June but will probably start to rise in the second half of the year when worldwide demand begins to match the supply.