Gas prices decline & stand at $3.29 per gallon

December 5th, 2011 - 7:50 pm ICT by Aishwarya Bhatt  

Los Angeles, Dec 5 (THAINDIAN NEWS) The price of gas continues to go on the downside despite the fact that the commodity is still costly on the international market. The price of fuel has been going down for the past two weeks in the United States.

Market analysts say the average price of gas in the United States stands at $3.29 per gallon. Over the past six weeks, the price of the commodity has gone down by about 18 cents. Though the price of gas is going down domestically, the same cannot be said about the price on the international market.

Lundberg Survey reports that gas distributors in the United States are narrowing their profit because as the commodity’s price drop domestically, the price has been increasing on the international market. The price of crude oil has gone up by more than $3 per barrel over the last two weeks.

The research firm explained that, “They (the oil industry in the United States) were unable to pass through the higher oil prices because American motorists’ demand for gasoline continues to shrink due to hard economic conditions.”

Analysts say the companies cannot sustain the trend and it is likely that the prices may not continue to fall for long.

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