In odd turn, Boone

gas prices creep

below state average
By Scott Nicholson

In an unusual turnabout, Boone gas prices are now among the lowest in the state, with average prices nearly a dime cheaper per gallon than the state average.

Local prices were hovering around $2.19 per gallon for regular unleaded gasoline, while the state average Monday was $2.27, according to AAA Carolinas. Lowest reported prices in the state are in the Hickory and Winston-Salem areas, at $2.11 per gallon, while the Asheville area is one of the most expensive places to fill up, with prices averaging $2.34 per gallon. Boone prices, however, did jump to around $2.28 per gallon on Tuesday.

Brendan Byrnes, Public Relations Manager for AAA Carolinas, said he had no explanation for regional differences in price, though all stations will likely raise their prices a couple of cents a gallon before the Memorial Day holiday. That will launch the annual price creep as summer travel leads to higher demand and thus higher fuel prices.

However, Byrnes doesn’t anticipate the wild roller coaster rides of the last couple of years, barring a major natural disaster that disrupts supply lines.

“What we’re expecting for the summer is it will probably be topping out around the $2.50 mark,” he said. “What we are seeing is plenty of supply, and it’s a different economy from last summer’s.”

Though demand for fuel is increasing in some countries, the domestic recession will likely reduce the overall number of miles traveled. Petroleum suppliers are also cautious about balancing pump prices with wholesale prices so consumers don’t simply stop traveling altogether.

“Crude-oil inventory is at a 19-year high so there’s plenty of inventory,” Byrnes said. According to manufacturing reports, increased demand in China and India suggests a resurgence in economic growth there.

That could augment the seasonal rise in demand to bump up gas prices across the country.

“Refineries are wary of killing summer-travel demand,” Byrnes said. “I think everybody knows travelers are watching the gas prices, and if it gets over $3, people might just stay home.”

With crude-oil prices dipping below $50 per barrel, pump prices were lower than $2 per gallon. Currently the price of crude is around $57 per barrel and is not likely to change dramatically.

“There’s plenty of inventory,” Byrnes said. “OPEC would like to see prices closer to $60 or $70, but they’ve got the same thing going on because they don’t want to kill demand, either.”

Last year at this time, the average price was $3.76 for a gallon of regular unleaded gasoline. The national average Monday was $2.30 per gallon.

“The economy is very different this year but we’re also seeing airline travel shift to auto travel,” Byrnes said. “People are more likely to travel in their cars.”

Aside from the law of averages and the balance of supply and demand, Byrnes said one market factor is reliable: “Gas prices do go up every summer.”