Iowa Gas Prices Yet to Benefit From Cheaper Oil Prices
By David DeWitte, The Gazette, Cedar Rapids, Iowa
Jan. 22–Iowa motorists have seen little improvement at the gasoline pump from the recent decline in crude oil prices.
The average price of unleaded ethanol at self-service pumps in Jan. 15 was $2.97, up 5 percent, or 15 cents, from the previous month.
Crude oil prices have fallen 6 percent from December 2007, according to the Iowa Department of Natural Resources’ monthly fuel survey.
However, that decline hasn’t worked its way through the inventory system to benefit consumers.
Oil prices remain 79 percent higher than a year ago, the DNR reported. However the Energy Information Administration, which failed to forecast this year’s surge in oil futures to $100 per barrel, is now forecasting a decline in oil prices for 2008 and 2009. It predicts oil prices will fall to an average of $87 per barrel in 2008, and $82 per barrel in 2009.
“Declining housing starts, tightening credit conditions and high gasoline prices are slowing U.S. demand for petroleum,” said Jim Bodensteiner, an Iowa Department of Natural Resources program planner.
Diesel prices in Iowa were up by 3 cents per gallon from mid-December to a statewide average of $3.37 per gallon on Jan. 15.
The recent decline in oil prices has also failed to penetrate into heating fuel prices as yet.
The DNR said the Jan. 15 trading price of natural gas was $8.14 per MMbtu, up 11.3 percent from the previous month, and 24 percent from January 2007.
The average price of a gallon of propane in Iowa was $1.97 on Jan. 15, up 2.6 percent from mid-December and up 33 percent from January 2007. Heating oil prices were relatively unchanged, at $3.01 per gallon.
Contact the writer: (319) 398-8317 or david.dewitte@ gazettecommunications.com
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