WASHINGTON, D.C. - The pain at the pump has eased some as gasoline prices dropped for the fifth consecutive week, the Wall Street Journal reports. On Monday, the U.S. Energy Information Administration (EIA) reported the average cost of a gallon of regular gasoline fell to $3.790, 3.8% lower than the April 2 peak of $3.941.
Demand has been tempered by the soft economies of Europe and the United States, while concerns about Iran€™s nuclear agenda have lessened. Crude oil supplies have been flowing more, and some refineries that had been marked for closure have restarted.
These positive changes have buoyed analysts€™ predictions. Instead of the doom and gloom of saying gasoline prices will inch over $4 and possibly reach $5 by June, now analysts are forecasting much more modest gains. The EIA states that a drop of a dime in pump prices rolls nearly 0.1% back into disposable income.
Tom Robinson, president of Robinson Oil, which runs Rotten Robbie convenience stores, has seen an uptick in gasoline purchases in correlation to falling fuel prices. "In the past six weeks or so, it seems like we've gotten a little bit of volume back," he said. As for pump prices, "I'm hopeful we've hit a peak, and based on the fundamentals I see, I think we have."