Or is it supply and demand?
Even as the traditional summer driving season kicks off this weekend, analysts predict gasoline prices will continue to ease from a spring spike that saw Louisville stations charging well more than $4 per gallon two weeks ago.
Prices have been declining since and many experts say prices will fall further amid signs of increasing supply and lower oil prices.
Later in the summer, as supplies increase, gas prices might dip to between $3.35 and $3.60 a gallon nationwide, said Tom Kloza, an industry analyst with the Oil Price Information Service, a Maryland company that tracks oil and gas prices.
Explaining his prediction for lower prices later in the summer, Kloza said demand for gas is “soft, or flat at best” compared with last year as Americans drive fewer miles in more fuel-efficient cars.
But, why are Americans driving fewing miles? Is it an income effect?
