GAS PRICES ON THE WAY DOWN!

By Dale Jewett
Automotive News / April 19, 2005

DETROIT -- One week after the average price for unleaded gasoline and diesel fuel hit all-time highs, prices were slowly retreating as crude oil prices hovered around the $50 per barrel mark. The average price for a gallon of regular unleaded stood at $2.224 on Tuesday, according to AAA of Heathrow, Fla. That was down 5 cents from the record $2.276 set on April 11. Diesel fuel was selling for an average of $2.3518 a gallon, AAA says. That's down from the record $2.388 on April 11.

But the falling prices may not last long. The price of crude oil for May delivery rose above $52 a barrel on Tuesday, according to Bloomberg News. The price was rising on speculation that growing demand will draw down inventories, Bloomberg said. The run-up in fuel prices over the past three months has been singled out as a key factor in the troubles facing General Motors and Ford Motor Co. So Automotive News will post twice-weekly updates on fuel prices.

The updates can be found at autonews.com/gasprices. Rising fuel prices have contributed to sales drops of light trucks at GM and Ford. With fewer high-profit light trucks moving off showroom floors, GM and Ford have made steep cuts in their estimated earnings for the year.