Has The Summer Gas Price Peak Passed?

Beginning in February or March of every year the gas prices begin to rise in anticipation of increased travel (and thus consumption) as winter moves into spring. Statistics show that the peak gas prices occur between June and August. So, with falling gas prices are we past the peak prices?

Of course, even when a peak price ends, its seems as if the new lower price is the same as the previous years' peak prices as the price gas consistently climbs each year. Here's a chart demonstrating the peak prices for the past three years.

Thus far it is difficult to determine if the drop in gas prices is a minor dip or the beginning of the end of our yearly peak. When we compare the gas price pattern in 2005 to 2006 we see quite a different story. So where are prices heading now? Well, if big business to the all time low "consumer confidence" in any indication, they are probably going to keep dropping. WalMart reported low May sales as the high gas prices keep would-be shoppers tightening their purse strings. Being perhaps a bit cynical, I say when big business starts feeling the sting of high gas prices via low sales, then action can be expected on their parts.

Let's keep our eyes open and watch for where gas prices are headed next. Hopefully into the low two dollar range again.