Gas Prices May Dip Below $3

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

CLEVELAND – Gas prices were expected to peak above $5 a gallon by summer -- instead they are falling.

”They’re looking good going down for the summer time,” said Ron Morton of Cleveland. “I’m hoping this is just not a phase to go back up before the winter time, you know what I’m saying?”

Nationwide, prices at the pump have been on the decline for 13 days.

On Monday, the average price of gas was $3.42 in Cleveland.

But the gas prices are a far cry from what experts predicted in March, when analysts said gas prices would reach $5 a gallon by summer.

“Part of the problem is that gas and oil prices depend on current market fundamentals, but they also depend on what people predict will happen in the future” said Robin Dubin, economics professor at Case Western Reserve University. “Three months ago, people were worried that Iran would close the Straits of Hormuz. Well that would prevent 20 percent of the world’s oil supply from reaching the market, which would certainly cause prices to spike.”

Dubin said a mix of a shaky world economy and decrease in demand has led to lower gas prices, which she anticipates will continue throughout the summer.

“I’ve seen people predict prices as low as $50 a barrel. Oil is currently trading at about $80,” she said.

Dubin said gas prices could dip below $3 a gallon, but a number of other factors may shake up the prices, including the current hurricane season.

Until then, drivers said they’re relieved that they won’t have to pay as much to drive. But many still remain skeptics and plan to continue to find ways to save on fuel.

“Just $3 a gallon? That will be great. I’ll believe it when I see it, though,” said Nicole Bird of Cleveland. “You have to shop around nowadays. I mean, it takes a little to get there, but at least if you find a good one, you’ll stick with that one.”

For those looking for the cheapest gas in Cleveland, click here to go to the Fox 8 Gas Tracker web page.

You can also download the Fox 8 Mobile app on the iPhone and on Android devices. Click on the “more” tab, then gas to find the cheapest fuel stations near you.

Notice: you are using an outdated browser. Microsoft does not recommend using IE as your default browser. Some features on this website, like video and images, might not work properly. For the best experience, please upgrade your browser.