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Gas prices show rise but may fall

The average price for a gallon of gasoline in the United States rose 7 cents in the past two weeks to the highest levels since October 2008, but should retreat following last week's sharp fall in crude oil prices, according to an industry analyst.

The national average for self-serve, regular unleaded gas rose to $2.92 per gallon on
May 7, up from $2.85 two weeks earlier, according to the nationwide Lundberg survey of about 2,500 gas stations.

On Friday, crude hit its lowest level since Feb. 16, at $74.51 per barrel after going over $87 earlier in the week as worries grew that the euro zone's debt crisis might derail the global economic recovery.

"The price of gasoline will fall possibly quite steeply -- at least some of those price cuts will be passed through by retailers to motorists" survey editor Trilby Lundberg said. "Crude will continue to gyrate in the coming days."

-- Reuters

What gas prices are you seeing around the region? Share a comment below.

By Michael Bolden  |  May 9, 2010; 4:53 PM ET
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BS what gas station you going to

Posted by: yourmomscalling | May 9, 2010 6:04 PM | Report abuse

Of course gas prices are going to fall.

Did people really believe that the price of oil is due to "supply"; this oil spill gushing 5k barrels per day, right off our shore would actually cause a decrease in supply?

Its a nice narrative, but the reality is that it is the oil industries narrative. The world, including, red OIL states (TX, LA, MS and FL) are furious at the oil industry and now the dialog about getting off oil is starting up again.

How does the Oil industry fight that? lower prices. After all, who can stay mad at BP if gas were cheap again.

Sure it will cost XOM, Shell, COP some profits in the short term, but they are smart, the can get it back over the decades if they can stop alternative energy and the green revolution.

The worse the spill, the lower the price. It is the Oil industry version of PR Marketing. Imagine you were CEO in the oil industry facing all of this critism about your product. Wouldn't it be nice to see GREAT articles like this one about your product? This is the cheapest advertising campaign they have ever launched.

The Obama industry should act quickly and enact a price floor of $75.00 per barrel.

Taxes on a barrel of oil remain the same as they are today if the price of a barrel is over (say) $75.00 (adjusted to inflation each year). If the price drops below, then a significant portion of the difference is taxed.

Example- If a barrel falls to $60, the $15.00 difference should be taxed at 50% - 70%. Or $7.00 per barrel.

That would do several things- Stop profitering by the oil companies, Establish certainty in the oil markets that would allow for the development of competitive energy sources (wind, Solar, Nuclear, bio fuels) thus stimulating investment, which will ultimately put some real competitive preasure on the oil industry (after all, if gas were to fall to $1 per gallong again, who would buy a Chevy Volt or even a Prius) and it would be a small step in moving in the right direction of getting us off oil.

Lastly, it would bring some desperately needed money to the US governement.

For those of you who say this would be a HUGE tax, I don't argue; but the evidence shows - you WILL pay that "tax" if we don't inact a policy like this, but the tax will just be called "Oil Industry Profits."

Posted by: Gus4 | May 9, 2010 7:23 PM | Report abuse

Uh, say what??? LOL What have they been smoking? There's no way possible that gas prices will fall anytime soon. In fact, I have already prepared for $4 gas this summer since it is coming. City traffic in Houston has returned to 2005 (post-Katrina) levels, but should fall back down to 2008 levels when gas prices eventually hit record highs.

Posted by: banzaigtv | May 9, 2010 10:21 PM | Report abuse

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