CHICAGO (CBS) — Is it music to the ears of motorists? An industry expert predicts the average price of a gallon of gasoline may drop to $3.50 after Memorial Day.
A stronger dollar, a weaker euro and a decision by Europe’s Central Bank not to continue raising interest rates will have a very real impact on you at the gas pump.
As WBBM Newsradio 780’s Mike Krauser reports, an expert is making a dramatic prediction that this combination of factors will ultimately drive gas prices down.
LISTEN: Newsradio 780’s Mike Krauser reports
Central banks worldwide are seeing the light, according to oil analyst Phil Flynn, at PFGBEST Research.
He says commodity price inflation, including oil, has been due, in large part, to a weak dollar caused by central bank intervention in the markets.
“This is a good thing, because I think central bankers have been in denial that their policies have been increasing the cost of commodities,” Flynn said.
A strong dollar, Flynn says, will lower oil prices, and ultimately gas prices.
“Shortly before Memorial Day you’ll start to see prices start to break,” Flynn said. “Perhaps after Memorial Day, we can get Chicago gasoline prices back down below $4 a gallon. I think on a national average we could even get back to $3.50.”
Chicagoans would be quite pleased at such a development, given the gas prices now. The cheapest price on ChicagoGasPrices Thursday was $4.28 per gallon of regular unleaded at a Sam’s Club at North and Railroad avenues in Northlake.
The most expensive figure on the site is now just 17 cents shy of $5. At the BP station at North and Elston avenues just east of the Kennedy Expressway entrance, gas is up to $4.83 per gallon.
Many drivers are keeping their fingers crossed.
“That’ll be great,” Curtis Jackson told CBS 2’s Mike Parker. “That’s a real relief to the common workers.”
Wherever the price bottom ends up, chances are Chicagoans will still be paying more than anyplace else . That dreaded summer blend surcharge will still be tacked on.