Pump Patrol: Gas prices decline slowly; is relief on the way?

DAYTON — News Center 7 is keeping a close eye on the cost of gas in Ohio as the average is now $4.96 a gallon, which is about 8 cents cheaper than a week ago.

It’s the first week-to-week decline since April.

News Center 7′s James Rider talked with an expert today from Gas Buddy on what relief could be on the way and why a short-term solution may hurt in the long run.

Gas prices are back under $5 a gallon in Dayton, and if President Biden decides to pause the federal gas tax that could save people 18 cents per gallon, except some experts are not sure that would be the right solution.

>> Pump Patrol: Check where the lowest gas prices are

Patrick De Haan, Gas Buddy Head of Petroleum Analysis said, “At its peak, it could save motorists about $70 a day. At the same time, motorists are spending $275 million more every day on gas compared to a year ago,”

Oil prices declines last week but were on the rise again today. De Haan said it’s hard to project if the price of gas will continue to fall. That’s due to a variety of factors but suspending the federal gas tax could lead to higher prices potentially.

“It could exacerbate the imbalance between supply and demand. That’s part of the reason why prices are so high, and supply is low. Cutting prices could continue to push demand up, widening that imbalance, pose a risk of prices eventually going up down the road, not down,” De Haan said.

When asked if suspending the federal gas tax was a good idea, De Haan replied, “Well, I’m torn. As a motorist I’d like to pay 18 cents a gallon less, but as an analyst, I’m worried it would send up prices and further widen the imbalance between supply and demand in the longer term.”

One thing to consider with the gas tax too is that it goes toward road improvements and maintenance. De Haan said the question when we will see, the next spike which will come likely right before the July 4th holiday or shortly after.