Fast War Credited For Gas Price Drop

TBO.com By CHERIE JACOBS cjacobs@tampatrib.com Published: Apr 16, 2003

TAMPA - Prices at the pump have dropped more than a dime in the past month because of speedy success in Iraq, analysts say.

Across the country, the average price of a gallon of self-serve regular is $1.59 - the lowest since Feb. 10, when it was $1.57. That's down from $1.72 a month ago.

In Florida, the average price is $1.63 a gallon, down more than 9 cents. In Tampa, the average is $1.59.

But gas prices depend a lot on what members of the Organization of the Petroleum Exporting Countries decide, and OPEC is meeting next week to cut oil production to lower supplies and boost prices..

``If that happens, we will definitely see gas prices go up,'' said Yoli Buss of AAA Auto Club South.

Plus, fallout from turmoil in Venezuela could create a gas crunch this summer, the U.S. energy secretary said Tuesday.

Gas prices usually rise in summer as demand increases, Buss said.

As crude oil became more expensive, gasoline prices began to rise shortly after the first of the year.

The American Petroleum Institute cited several reasons for that: the strike in Venezuela that reduced exports to the United States, tight worldwide crude oil supplies, and nervousness about with Iraq that had traders bidding up prices.

Now, crude prices have dropped from $40 a barrel to about $28.

Reporter Cherie Jacobs can be reached at (813) 259-7668.