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Hernando Today

Gas Prices Should Continue To Slide This Week

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By TONY HOLT

Hernando Today

Published: October 13, 2008

TAMPA - A bad economy is making the public cynical about gas prices.

At a time when they should be encouraged by the record-breaking decreases, they are unable to summon the optimism.

The perceived disaster on Wall Street is making them feel that way.

"I don't see it lasting very long," said Jimmy Smith, of Spring Hill. "I'm afraid anything can happen right now ... This economy is getting worse."

Smith was filling up his Chevrolet van at the RaceTrac at the corner of Deltona and Cortez boulevards, where regular gas was listed at $3.21 per gallon.

The Shell station across the street had the same price posted on its sign. That intersection sells some of the cheapest gas in the county, according to GasBuddy.com.

"Gas prices go down for a little bit and then they go back," said Melanie Hall, of Weeki Wachee, who was filling her Hyundai sedan at the same RaceTrac.

For the full effect, she kept repeating herself.

"It seems to go down for a few weeks then they go up," she said. "Then it goes down and goes up."

In two days, the national average for a gallon of gas dropped by 10.3 cents to $3.247.

The reasons for the decreases are mostly because of a decline in demand and a full recovery from Hurricanes Ike and Gustav.

Both storms caused refineries along the Gulf Coast to shut down. It normally takes several weeks for them to operate at full capacity again.

As for the dropping demand, the weakening economy is the culprit.

Last week's report from the U.S. Department of Energy indicated larger fuel inventories and some of the lowest daily consumption of crude oil since 1999, when gas prices were below $1 per gallon in most places.

"Motorists can expect retail gasoline prices to continue to drop at a rapid rate this week," said Randy Bly, a spokesman with AAA Auto Club South.

The average price for a gallon of regular gas in Florida is $3.345, down by more than 26 cents compared to the week before.

Reporter Tony Holt can be reached at 352-544-5283 or wholt@hernandotoday.com.

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