Gas prices declining in wake of stock market plunge

Last week’s stock market plunge brought good news for consumers on the energy front. Gas prices are declining in the wake of lower crude oil prices.

Crude oil dropped to its lowest price of the year last week, dramatically reducing the cost of producing gasoline, AAA said Monday.

Palm Beach County’s average for a gallon of regular was $2.73 Monday, two cents higher than a week ago, but it’s expected to start declining. Florida’s average stood at $2.64, up from $2.60 a week ago. The national average declined to $2.58 Monday, from $2.60 a week ago, according to AAA’s Fuel Gauge Report.

“Gas prices have the potential to drop 10-15 cents, based on what happened last week,” said AAA spokesman Mark Jenkins.

Patrick DeHaan, head of petroleum analysis at GasBuddy, said, “The wait is over — 2018’s first weekly drop at gas pumps has arrived with the national average losing ground in the last week. As the Dow Jones average swung violently, oil prices lost considerable ground, falling below $60 per barrel for the first time this year. In addition, a weekly report from the government showed a trifecta of inventory increases: crude oil, gasoline and distillate inventories all gained, pushing wholesale gasoline prices down and paving the way for gas prices to cool off.

“These factors have opened the door for perhaps a brief window of relief at the pump that may last for several weeks,” DeHaan added. “I’d expect most places would see gas prices decline in the week ahead as a direct result.”

AAA’s Jenkins said refinery maintenance season is fast approaching and could spoil this big break for motorists. “Every year — from February to April — reduced refinery output and the switch to summer-blend gasoline normally causes gas prices to rise 30-70 cents,” he said.