The latest survey from the Iowa Office of Energy Independence shows the average price of a gallon of unleaded gas was down nine cents compared to the January survey. Analyst Kerri Johannsen says the drop appeared to be a market adjustment. She says it seems the prices increased between December and January and then there was a correction in the market as people saw the numbers and demand in the U.S. was still weak and supplies were still good.
Johannsen says the economy is still impacting the demand for gas in Iowa with driving down. Johannsen says the business use of petroleum is still down. The average price of a gallon of unleaded gas was $2.45 in the February 16th survey. That is 32% higher than February of last year. While Iowans noticed a drop at the pump, that has changed again in the past week, which Johannsen says is a symptom of the up and down oil market.
She says they expect prices to remain volatile, making it hard to predict what will happen with gas prices. In the last week oil prices have rebounded to just under $80 a barrel and she says they appear to be sticking at that price. The rebound in oil prices prompted a bump up of five to 10 cents in gas prices — depending on where you live.
You can see the gas price averages for the various metro areas on the Office of Energy Independence website at: www.energy.iowa.gov.