Gas off record highs, but upward trend continues

Gas off record highs, but upward trend continues

www.californiagasprices.com

SOURCE: Various Sources

CALIFORNIA (July 29, 2004) ? Don't be fooled by all the gas price alerts across the U.S. reporting that gas prices are going down. Consumers may get some temporary relief, but historically gas prices increases have been accelerating and it may not be long before they start rising again.

Florida is cutting its gas tax to help consumers, according to the Associated Press. The state's gas tax cut goes into effect this Sunday and will last through August. As of Sunday, the cost of filling up in Florida will be eight cents less a gallon. It's designed to help small business and tourism in a time of skyrocketing fuel prices. The tax break applies to all grades of fuel sold at the pump, except diesel.

This week, Florida's more than 11-thousand gas stations received bright yellow posters and decals that explain the tax cut. Gas stations can decide whether or not to post the signs. But if they don't pass the savings along to customers they will face investigation from the state attorney general. A violation of the law is a third-degree felony, punishable by up to five-thousand dollars in fines and up to five years in prison.

In addition to the signs, the state is buying radio spots and ads in weekly newspapers. But the actual bottom-line savings might be negligible, since the cost of crude oil shot to new highs Wednesday. That usually means a new round of gasoline price hikes.

The American Automobile Association is reporting that a trip to the gas station is less expensive now than it was a month ago, but not by much. According to a new report by AAA of Northern California, which tracks gas prices as a service to consumers, the average price for a gallon of regular unleaded gasoline in California has dropped, but admits that gas prices are up for the year.

?It?s an encouraging trend, but we have a long way to go before most consumers would be able to cross high gas prices off their list of concerns,? said Sean Comey, spokesman for AAA of Northern California. ?Even if prices continue to decline at this rate--- and that?s a big if--- it would take months before we?d be back to where prices were a year ago.?

Californiagasprices.com features daily price tracking in California, including comparisons from several gas stations to help consumers find the best price on gas. The site includes a two-year survey that shows gas prices nationally have risen 38 percent while California's has increase by 44 percent. You can compare gas prices in different cities against the national average.

Consumers can even report where they are finding lower or higher gas prices. To learn more, visit http://www.californiagasprices.com.