In odd turn,
Boone gas prices creep below state average
By Scott Nicholson
In an unusual turnabout, Boone gas prices are now among
the lowest in the state, with average prices nearly a dime cheaper
per gallon than the state average.
Local prices were hovering around $2.19 per gallon for regular
unleaded gasoline, while the state average Monday was $2.27, according
to AAA Carolinas. Lowest reported prices in the state are in the
Hickory and Winston-Salem areas, at $2.11 per gallon, while the
Asheville area is one of the most expensive places to fill up,
with prices averaging $2.34 per gallon. Boone prices, however,
did jump to around $2.28 per gallon on Tuesday.
Brendan Byrnes, Public Relations Manager for AAA Carolinas, said
he had no explanation for regional differences in price, though
all stations will likely raise their prices a couple of cents
a gallon before the Memorial Day holiday. That will launch the
annual price creep as summer travel leads to higher demand and
thus higher fuel prices.
However, Byrnes doesn’t anticipate the wild roller coaster
rides of the last couple of years, barring a major natural disaster
that disrupts supply lines.
“What we’re expecting for the summer is it will probably
be topping out around the $2.50 mark,” he said. “What
we are seeing is plenty of supply, and it’s a different economy
from last summer’s.”
Though demand for fuel is increasing in some countries, the domestic
recession will likely reduce the overall number of miles traveled.
Petroleum suppliers are also cautious about balancing pump prices
with wholesale prices so consumers don’t simply stop traveling
altogether.
“Crude-oil inventory is at a 19-year high so there’s
plenty of inventory,” Byrnes said. According to manufacturing
reports, increased demand in China and India suggests a resurgence
in economic growth there. That could augment the seasonal rise
in demand to bump up gas prices across the country.
“Refineries are wary of killing summer-travel demand,”
Byrnes said. “I think everybody knows travelers are watching
the gas prices, and if it gets over $3, people might just stay
home.”
With crude-oil prices dipping below $50 per barrel, pump prices
were lower than $2 per gallon. Currently the price of crude is
around $57 per barrel and is not likely to change dramatically.
“There’s plenty of inventory,” Byrnes said. “OPEC
would like to see prices closer to $60 or $70, but they’ve
got the same thing going on because they don’t want to kill
demand, either.”
Last year at this time, the average price was $3.76 for a gallon
of regular unleaded gasoline. The national average Monday was
$2.30 per gallon.
“The economy is very different this year but we’re also
seeing airline travel shift to auto travel,” Byrnes said.
“People are more likely to travel in their cars.”
Aside from the law of averages and the balance of supply and demand,
Byrnes said one market factor is reliable: “Gas prices do
go up every summer.”
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