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Las Vegans fill tanks with cheaper gasoline — but prices expected to rebound

Las Vegas motorists are stashing some extra cash in their pockets these days — but analysts say be prepared to pay more at the pump starting in March.

AAA released a report this week that showed Nevada’s average gasoline price was $2.19 per gallon for regular unleaded, a 29-cent drop in the past month. By contrast the national average stood at $1.73 per gallon but only a 23-cent drop.

Gasoline prices were $2.19 per gallon on average in Henderson and Las Vegas and $2.20 per gallon in North Las Vegas, a drop of 33 cents in Henderson and North Las Vegas and 31 cents in Las Vegas over the past month, according to AAA.

Gasoline price tracking web site GasBuddy.com pegged the average price at $2.18 per gallon, a decline of 9.8 cents in the past week and 33.2 cents over the last month. They are 17.8 cents lower than they were a year ago at this time, the site reported.

“Prices continue to slide because we’re seeing an oversupply of crude on the local level and national level,” said AAA spokeswoman Cynthia Harris. “This is the highest inventory we’ve had in eight decades and why prices are continuing to drop in most states.”

Harris said it’s not unusual for prices to drop in January and early February because people don’t drive as much and there’s less demand for gasoline compared to the summer. Coupled with Saudi Arabia not capping its oil production and Iran putting oil on the global market with sanctions lifted, prices should continue to drop about a penny a day for now.

“We will continue to slide for a week or so and then stabilize and then gradually uptick,” Harris said.

The reason for that is seasonal because refineries change the blend of gasoline and refineries are shut down for maintenance during the spring, Harris said.

“It’s usually by the end of February that we start to see an increase, but that doesn’t mean it will happen this year,” Harris said. “It may be later.”

Will Speer, a senior petroleum analyst with GasBuddy.com said he expects Las Vegas gasoline prices to continue their decline for the next two to three weeks. It won’t reach the most recent low of $1.72 per gallon in December 2008, but Speer said it could hover just above $2 per gallon.

The lowest gasoline price in Clark County on Tuesday was $1.88 per gallon at Fills at 355 E. Silverado Blvd. By Wednesday afternoon, Smith’s, 2385 E. Windmill Lane and Circle K, 8835 S. Eastern Avenue, had the lowest prices at $1.83 per gallon.

Speer said he expects prices to bottom somewhere in the low $1.70s per gallon at select stations in the valley.

Las Vegas and Southern California are not seeing even lower gasoline prices because of an explosion at a Torrance, California, refinery that has been operating at limited capacity and won’t be fully operational until June, Speer said.

“You would be 40 to 45 cents cheaper otherwise,” Speer said.

Speer said he expects Las Vegas gasoline prices to start increasing in March and by summer reach levels of between $2.65 to $2.75 per gallon for regular unleaded.

For now, motorists are enjoying the windfall.

“It’s good for us,” said Jun Cervantes, 68, of Las Vegas, who said he was driving by the Fills station when he saw the $1.88 per gallon price. “One of the places I saw it was $2.25.”

Cervantes said he will save the money from spending less on gasoline and use it for car repairs.

April Sawer, 30, of Las Vegas said the low price is why she stopped at the station to fill up.

“You can’t beat $1.88,” said Sawer who lamented what’s she’s seeing elsewhere. “It’s so cheaper everywhere else in the country.”

Sawer said she has nothing special to spend the savings on from low gasoline prices. She said she’s a realist.

“I will save it because gas will go back up soon,” Sawer said. “It will be $3 or $4 again before you know it.”

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