Gasoline Prices May Seem Low, But They're Not

If gasoline prices seem kind of low to you, consider this; they are still 45 cents a gallon more than they were at this time last year.

Nationwide, the average price of self-serve regular is $3.30 a gallon, according to AAA's Fuel Gauge Survey. Where you live it might be more or it might be less. Prices might seem low because they are going down. A month ago, the average price was $3.44 a gallon.

While gasoline prices traditionally are lower at this time of year, the price of oil has been rising, which should make gasoline cost more. West Texas crude is trading around $97 a barrel, despite fears the global economy is slowing.

Yet back in July, when oil cost less, gasoline cost more. The average price of self-serve regular in mid July was $3.59 a gallon. Even though gas prices are lower now they have been in recent weeks, the Energy Information Administration reported last week that gasoline prices were the highest ever recorded for a Thanksgiving week.

Last year at this time, gas prices were on the rise. Starting in the early fall prices for both crude oil and gasoline began to rise. Gasoline hit $3 a gallon just before Christmas and kept rising throughout the winter.

Energy analysts say one big reason for November's decline in gasoline prices is weak demand – the weakest in more than a decade. The good news is forecasts call for this gradual decline to continue through the end of the year. The bad news is prices will probably start climbing again in the spring -- so don't buy that V-8 Hupmobile SUV just yet.