The average gas price in Iowa didn’t change much from last month’s survey, but D-N-R analyst David Downing says the average is a little deceiving.He says the average price was one-dollar-thirty-six cents a gallon — up a penny from last month — but between surveys there were swings of 10 cents-a-gallon. Downing says retailers have kept supplies low, so any fluctuations caused a jump in gas prices. But, he says bountiful imports kept summer gas prices well below what they could’ve been.He says imported gas has been coming into the U-S in record levels to keep prices artificially low. Downing says the potential for an attack Iraq on is the wild card in gas prices. He says Iraq supplies two-and-a-half million barrels of oil a day that eventually is refined into gas.He says there’s already a two dollar “war premium” on the 30-dollar-a-barrel oil now, and war would make things worse. With cooler weather on the way, Downing says some Iowans may face some high heating costs.Downing says heating oil is a fuel they’re concerned with, as supplies have already been low. Downing says about five-percent of Iowans use heating oil to warm their homes. Propane has held at around 74 cents-a-gallon, and Downing says oversupply is keeping the price up.Farmers haven’t used as much propane to dry their crops, so there’s still a lot of higher priced propane on the market. Downing says once the higher-priced propane is used up, the price should drop.
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