Gas prices drop ahead of holiday

PANAMA CITY, FL - Retail gas prices are going down just in time for Fourth of July holiday travels, AAA Auto Club South reported.

"All the indicators reflect that the peak price is behind us and we can now  expect retail gasoline prices to edge downward, even as we approach the Independence Day weekend," club spokesman Gregg Laskoski said in a Monday press release.

Retail gasoline prices fell by 5 cents per gallon nationwide the past week, from $2.69 to $2.64. Statewide, prices fell from about $2.72 last week to the current $2.68, according to an AAA report.

Retail gasoline prices in Panama City is following that trend, according Floridastategasprices.com. Gas prices averaged $2.70 last week but are down to an average of  $2.56 Monday, according to user-reported statistics on the Web site.

Analysts expect oil prices to continue to fall because of high oil inventories and weak demand, according to the AAA release. Crude oil prices settled at $69.16 Friday, down from about $72 a week ago, according to the New York Mercantile Exchange.

AAA released a report Thursday showing fewer travelers are expected to hit the roadway this Independence Day. Travel over 50 miles is expected to be down 1.9 percent from 2008 because people are cautious about the recession. Driving to a vacation destination will be down 2.6 percent, according to AAA.

Last year, 37.8 million Americans traveled for the holiday. This year, AAA projects 37.1 million people to be on the road.