Holiday week gas prices falling

Retail gasoline prices headed downward to begin one of the country’s busiest travel weeks, with more than 33 million people expected to hit the road for the Thanksgiving holiday.

Americans are remaining closer to home because of anxiety about the economy and demand for gasoline is weaker now than it was last year at this time.

That is telling because a gallon of gasoline then cost only $1.93 as the economic crisis unfolded in 2008.

Unlike last year, however, gas is not falling sharply and though prices fell overnight, it still cost $2.64 per gallon on average, according to auto club AAA, Wright Express and the Oil Price Information Service.

The average cost of a gallon of regular gas in the Spokane market Monday was $2.77, AAA reported. (A year ago, it was $1.88.)

“I think we will see some increases in the spring like we always do,” said Fred Rozell, retail pricing director at OPIS. “But at this point I think we’re going to kind of see a status quo for a while.”

Crude prices have remained relatively strong, which has helped keep gas prices well above $2.50.

A survey by AAA this weekend found that the number of Americans traveling away from home for Thanksgiving will be up just 2.1 percent this year from 2008.

Oil prices jumped early in the day and nearly touched $80 before falling. Crude prices have dragged retail gasoline prices higher throughout the year.

Benchmark crude for December delivery fell 10 cents to $77.37 a barrel on the New York Mercantile Exchange, partly because of surprising housing numbers.

Refiners say they can’t raise the price of gasoline and jet fuel because people aren’t traveling as much, but they must pay higher prices for crude because of the weak dollar.

Air travel is projected to decline 6.7 percent, or 2.3 million travelers this year compared to 2.5 million in 2008.