Gas prices drop slightly in Middle Tennessee

Gas prices drop slightly in Middle Tennessee (Image 1)

After a four month push toward $4 a gallon gas prices, several factors may have contributed to fuel prices slightly decreasing and analysts expect them to continue to fall over the next few weeks.

The price of regular gasoline is down to $3.86 nationally.  Some local stations have stayed close to $3.72 with some at 20 cents lower than the average price. 

Several factors were at play for the drop in gas prices.

A report stated that Libyan production is recovering and fuel consumption is down nationally and overseas.

Non-OPEC production is also keeping pace with world consumption for the first time since 2009.

There is speculation that the price could drop another five cents over the next week, which would be the first time since October 2009 that drivers would pay less than they did a year earlier.

While prices are expected to remain lower for the next few weeks, the summer outlook has gas prices back up.

The outlook showed consumers will be paying $3.95 for a gallon of regular gasoline on average by July 2012.

That spike is roughly 30 cents more than consumers were paying in the month of April.

Gas prices have shown an increasing trend over the past couple of years in the month of July.

Nationally, Consumers paid $2.76 per gallon on average in July 2010 and $3.71 per gallon in July 2011.

The biggest reason for higher summer prices is world consumption and unrest in the Middle East and North Africa.

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