Louisiana Gas Prices Down But Will That Trend Continue?
The past few weeks have been a literal whirlwind of activity as far as fuel prices around the country and here in Louisiana have been concerned. In one month's time, the average price for a gallon of regular gas in Louisiana has jumped from $3.28 a gallon to the current average price of $4.12 a gallon. This data is courtesy of Triple-A, the American Automobile Association. However, yesterday marked the third straight day that average prices for regular gas in Louisiana either held steady or fell.
Does this mean that we have reached the peak of this current high price trend? According to industry analysts the answer to that question is yes...and no. No, the experts aren't trying to straddle the fence like a politician they are simply suggesting that lower prices could be coming but a few things will need to happen first.
One of those things will be peace in Ukraine. The current conflict between Russia and Ukraine is perceived by many to be the catalyst for this most recent spike in gas prices. Those same analysts who predicted higher fuel prices because of the conflict now say that if negotiations to end that conflict are successful prices could begin to come down sooner than later.
However, if there is an escalation of military activity between Russia and Ukraine a rise in prices can't be ruled out. So, if you need a personal reason to hope for peace on Earth your car's fuel tank could be that reason.
Another factor that could bring fuel prices down is another COVID lockdown. No, there's not a lockdown in the United States but in China. The entire Chinese Province of Jilin is now under lockdown because of an uptick in COVID cases there. This lockdown could significantly reduce fuel demand. That could help aid in lowering prices globally.
If you're wondering how could a lockdown in one province of one country affect fuel prices in Louisiana you'll need to understand that Jilin Province is home to 24 million people. Schools in the cities of Beijing and Shanghai are now conducting classes online exclusively.
Even if these two global events work to bring fuel prices down we won't see them fall as quickly as they have risen over the past couple of weeks. The reason for that is the way suppliers buy oil. With many experts saying the price of crude oil could reach $200 a barrel many distributors locked in prices at $130 a barrel.
Now even with the price of oil below $100 a barrel today, those distributors are still tasked with selling that more expensive oil. And if you think they're going to eat that additional cost then you could look in the mirror and see an idiot. They won't. The prices will begin to come down once those contracts on higher price oil have been completed.
So what should Louisiana drivers be doing or at least budgeting for as far as fuel prices are concerned? Triple-A is suggesting that motorists in Louisiana budget for fuel prices of $4.00 a gallon at least through May. It's very likely that prices will be below that mark by then or if things get really unsettled across the globe they could be significantly higher. But $4.00 is a very safe number to plan your expenses at least for the next few months.
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