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Gas prices should drop sharply this weekend - especially if you know where to buy

Today, (2-28-13) we predict that gasoline prices should begin to decline on average in San Diego County through Monday from six to twelve cents a gallon.

In the last 60 days gas prices have narrowly avoided a full on superspike, but they have still increased by 60 cents in less than 30 days - a huge record setting price increase that makes this the most expensive February on record for California gasoline.  At this time, however, wholesale prices are dropping rapidly for unbranded independent dealers. The price of surplus gasoline on the spot market for unbranded gas has plunged by 25 cents a gallon since Monday. 

This doesn't mean that the retail price of gasoline will drop by 25 cents, because dealers must first sell the expensive gasoline that is already in their tanks to make room for the cheaper gas in the pipeline. In addition, the dealers at brand name stations aren't getting discounts from their refineries.  What that means is that if you see cost cutting this weekend it will likely happen at the unbranded stations first.

Once these stations start chopping their prices by more than a dime, the majors will be forced to follow. When that happens, the average price will drop quickly. 

For more information contact Charles Langley at www.ucan.org, the Utility Consumers' Action Network.