Gas prices may scale back as early as Thursday

By Marisela Burgos - bio | email

LOUISVILLE, KY (WAVE) - Around Kentuckiana, many gas stations are selling gas for more than $4. Some gas stations are selling gas as high as $4.19, but some believe we'll see those prices decrease soon.

David Dubofsky, a University of Louisville professor of Finance and an associate dean for Research and Faculty Development, said we could see those prices scale back as early as Thursday.

Dubofsky said possible flooding along the Mississippi River and in Louisiana raised fears refineries would shut down or produce less crude oil and that's why, he said, there was a sudden spike. He said the refineries in that area produce about 13 percent of gasoline used in the United States.

"With the anticipation that the flooding could really be bad, there was a mini panic and gasoline prices went up by about 10 percent earlier this week," he said.

He said getting crude oil barges to the refineries, heightened the panic. Dubofsky said the last time we saw a peak was in 2008, when gas prices reached $4.20. He anticipates gas prices will go down, just as long as the water does not rise.

"Chances are they'll get translated lower prices even by tomorrow (Thursday). I don't think we'll get below 4 bucks," he said.

Dubofsky said in order to get that price at the pump down, we need to cut the number of cars on the road by half, including gasoline consumption and that would help decrease the price of crude oil.

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