Gas prices begin their fall decline

Despite decreases, Mahoning Valley gasoline prices are the highest in Ohio.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
Falling gasoline prices should continue with the easing of Mideast tensions and the end of summer, an observer said.
Bevi Norris, a spokeswoman for the AAA Ohio Motorists Association, wouldn't predict how low prices might drop but said she expects declining prices to continue because that is normal at this time of year.
Prices usually fall in September because demand declines and refineries are permitted to produce winter grades of gasoline that are less expensive because they have fewer ozone-protecting additives, Norris said.
A disruption in the oil markets or supply chain could halt price drops, of course. That's what happened last year when Hurricane Katrina damaged oil platforms and refineries.
The average price of regular gas surged to $3.10 a gallon in the Mahoning Valley on Sept. 5, which was the highest price recorded for this area by AAA.
Recently, however, international developments and weather patterns have favored motorists.
Prices have been falling for the past month since a cease-fire was reached in the battle between Israel and Hezbollah. Also, hurricanes have not disrupted supply chains. Earlier this year, weather experts had predicted the hurricane season would be as bad as last year.
Words of caution
In a report issued Wednesday, however, the federal Energy Information Administration cautions against expecting a big drop in gas prices after Labor Day.
Prices have fallen recently because the U.S. maintained adequate gasoline inventories during the peak demand period in the summer, the report said.
However, the winter heating season is coming and concern about the supply of heating oil could create pressure that will keep prices up, it said.
Also, international tensions have not gone away, the report noted. The United Nations still is dealing with Iran's decision to pursue a nuclear enrichment program and oil supplies are being disrupted by rebel violence in Nigeria.
Highest prices in state
Despite the recent drop in local gasoline prices, the Mahoning Valley still has the highest average price in Ohio, a AAA survey said.
The average per-gallon price Wednesday in the other seven metropolitan areas in the state ranged from $2.50 in Dayton-Springfield to $2.60 in Cleveland. The average price in the Mahoning Valley was $2.73.
Before prices started falling a month ago, local stations had the lowest average price in the state at $2.88 a gallon. While the average price locally has fallen 15 cents a gallon, other areas of the state have seen drops of about 40 cents.
Norris said it's not unusual for prices in one area of the state to remain higher than others when prices are falling.
"What could happen over the next couple of days is that these prices will level out because everyone's price is coming down," she said.
The reason for the price difference could be in the distribution system because gas could be brought into the state from different areas, she said.
The national average for regular gas is $2.82 a gallon, the AAA said.
shilling@vindy.com