Today’s fuel price musings - should we expect $4 gas for Memorial Day?

May 19th, 2008 at 02:57pm Thomas V. Bona

Rockford gas stations seem stuck at $3.95 a gallon, but could the increased demand of Memorial Day traffic push prices over $4? I’d bet on it, given how volatile the market has been this spring. What’s interesting is that recent history shows an inconsistent trend in the run up to Memorial Day:

In 2007: The Illinois average was almost $3.46 the week before Memorial Day, and steadily rose to $3.52 by the end of the week. After Memorial Day, prices fell as far as $2.95 by early July before going back into $3 territory.

In 2006: The Illinois average was almost $2.93 the week before Memorial Day, and prices fell to $2.88 by the day after Memorial Day. Then they rebounded and hit $3 by July.

In 2005: The Illinois average was almost $2.11 the week before Memorial Day, falling to $2.08 the day after Memorial Day. Then they started their upswing.

In 2004: The Illinois average was $2.10 the week before Memorial Day, increased to almost $2.12 the next day and then fell back to $2.10 by Memorial Day. Prices eventually fell as far as $1.85 that September before rebounding.

The takeaway? I have no clue what’s going to happen this week or into the summer. If you see $4 regular unleaded, let me know at 815-987-1343 or tbona@rrstar.com.  Also, let me know if high gas prices have made you change your Memorial Day travel plans.

Now on to the prices (data courtesy of AAA’s fuelgaugereport.com):

Gasoline: Rockford held at $3.91 a gallon for the metro area, a tenth of a cent below the record set Friday. We’re still sixth in the state. The state average rose to a record $3.98 a gallon Sunday, and backed down a fraction of a cent today. The national average rose a fraction of a cent to a record $3.79 a gallon. Illinois has the fourth-highest gas prices in the nation.

Diesel: All prices here are records. Rockford increased another two cents to almost $4.58 a gallon today, while the state average rose haf a cent to $4.59 a gallon. We still have the second highest diesel prices in the state. The national average increased a penny to $4.52 a gallon. Illinois has the 15th-highest prices in the country.

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