Gas Prices Expected to Drop

By  | 

NEW YORK (AP) -- Analysts say motorists can expect some relief
from sky high gas prices just in time for summer vacation.

The analysts say expect a drop of nearly 50 cents as early as

After rocketing up 91 cents since January, the national average
last week stopped just shy of $4 a gallon and has retreated to
under $3.98. A steady decline is expected to follow. Among the
reasons: concern over rising oil supplies and falling demand in the
U.S., as well as an increase in gasoline production.

The drop in gasoline prices might help lift consumer spending,
which powers about 70 percent of the economy. A 50-cent drop in
prices would save U.S. drivers about $189 million a day.

Typically, gas prices peak each spring, then fall into a
summertime swoon that can last several weeks.

Fred Rozell, the retail pricing director at the Oil Price
Information Service, says this year's decline should be gradual but

Oil analyst Andrew Lipow predicts gas is going to be $3.50 per
gallon this summer.