Gas lowest price u.s

La Crosse gas prices lowest in the state

Gasoline prices will continue to decline through the summer because of falling crude oil prices and optimistic expectations for the war in Iraq, the U.S. Department of Energy said Tu.sday.

Meanwhile, AAA Wisconsin said Tu.sday the average price for a gallon of selfserve regular unleaded gasoline in Wisconsin was $1.606 on Monday, down 14.7 cents from one month ago. It also said the La Crosse market had the lowest average price in the state, at $1.527, in the survey AAA took Monday.

The Energy Department's summer forecast said gasoline prices likely would average $1.56 a gallon during the vacation driving season, a su.stantially more optimistic forecast than was issued a month ago. Then, the department expected motorists to pay more than $1.70 a gallon throughout the summer.

The report by DOE's Energy Information Administration cautioned that prices are likely to range widely across of the country. It said gasoline prices in California, for example, are expected to be about 50 cents higher than the national average.

EIA Administrator Guy Caruso said the summertime

anticipated average of $1.56 a gallon is still 17 cents a gallon higher than last summer, but close to the prices that motorists paid at the pump in the summers of 2000 and 2001.

Gasoline prices dropped nearly a dime in the last three weeks when the national average was $1.73, the highest motorists ever have paid for gasoline. The EIA reported a price of $1.63 a gallon on Monday.

The report said the gasoline price drop reflected the dramatic decline in crude oil prices in recent weeks. The price of crude, which hit a high of nearly $40 a barrel on Feb. 27, was around $28 a barrel on the New York Mercantile Exchange on Monday.

Gasoline prices have decreased because of falling oil prices, agreed AAA Wisconsin spokesman Michael Bie and Bob Bartlett, president of the Petroleum Marketers Association of Wisconsin.

"Crude oil prices, which had been high much of the winter preceding the outbreak of war, dropped considerably when the war finally broke out," Bie said. "I think the market responded with some degree of relief when the conflict actually broke out. And having a speedy resolution to the situation (in Iraq) has further helped in reducing crude oil prices."

Bie said it's too soon to predict where prices will be as the summer driving season approaches. They typically go up because demand for gasoline increases in the summer, and in recent years the springtime conversion from winter blends of fuels to summer blends has caused sharp price increases, especially in the Midwest, he said.

Bie said average prices for regular unleaded gas in the region Monday were $1.606 in Wisconsin, $1.469 in Minnesota, $1.522 in Iowa, and $1.572 in Illinois. He said the La Crosse market had the lowest average price in the state at $1.527, while the Eau Claire market had the highest average at $1.634.

A Tribune check of 11 La'Crosse gas stations Tu.sday showed even lower prices. Prices ranged from $1,429 to $1.499 a gallon for regular unleaded gas.

Bie and Bartlett said La Crosse gas prices have tended to be below the statewide average because of competition from stations in Minnesota. Bartlett said that's because Minnesota's state gasoline tax is It cents a gallon lower than Wisconsin's.