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- 15 Apr
AAA expert predicts fuel prices to top out at $3 / gallon
In a statement that sets consumer expectations for fuel to top out at $3/gallon this year, the Troy Messenger reported today that an expert with AAA doesn’t expect fuel prices to go much above $3/gallon if even that.
“This is just the time of year where we see prices increase because our demand naturally increases,” said Clay Ingram, public relations and marketing manager for Alabama AAA.
Ingram said the trend occurs every year around spring after drivers have recovered financially from the holidays and have begun to get out and enjoy the weather. “It’s not unexpected by any means,” he said.
Ingram said economic factors may be currently influencing fuel prices, as well. “There seems to be a little optimism on the Wall Street side of things that the economy might be turning around,” he said. That confidence drives up the price of commodities as investors rush to buy crude oil.
Still, Ingram said that at $83 per barrel, the price of oil is where it should be, and while demand is rising as expected, it is still relatively low. “Our demand right now comparatively, is really mild,” he said. For that reason, Ingram explained consumers shouldn’t worry about any dramatic increases in fuel prices like what was seen two years ago.
“That will be why we won’t see our fuel prices go up a dollar per gallon in a month,” he said. “I don’t think we’ll see anything that extreme this year.”
Ingram said that high inventories and favorable refining capacities are also factors that will likely prevent sudden fuel price increases since they would allow for the accommodation of a sudden spike in demand.
In fact, Ingram said fuel prices could be near a high-mark for the year. “I’m not even sure we’ll go over $3 a gallon this year. If we do, it won’t be by much,” he said.
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