Vacation drivers could see lower prices at pump

The U.S. Department of Energy indicated Thursday that gasoline retailers could ease off the price accelerator just in time for the nation's peak vacation season, sharply lowering price projections

Friday, April 7th 2000, 12:00 am

By: News On 6

The U.S. Department of Energy indicated Thursday that gasoline retailers could ease off the price accelerator just in time for the nation's peak vacation season, sharply lowering price projections for regular to $1.46 a gallon from $1.80.

While less than the government's previous estimate, the new figure is about 25 percent higher than the $1.17 a gallon charged last summer. The projection is the average price for a period stretching from Memorial Day weekend at the end of May through Labor Day early in September.

"We are more optimistic today. Some of the tightening of the market has improved," said Jay Hakes, the administrator for the Energy Information Administration, the forecasting arm of the Energy Department.

The government changed its projection because of the March 28 decision by the Organization of the Petroleum Exporting Countries to boost production by as much as 1.7 million barrels a day.

In addition, oil-rich nations outside OPEC are expected to increase their petroleum production. Mexico, for instance, will boost its production by 350,000 barrels.

Nationally, the average cost of regular grade gasoline was $1.52 a gallon in March, the Energy Department reported.

The agency sounded a note of caution for summer travelers: Prices at the pump could remain high or even increase if there are any disruptions at U.S. refineries.

Motorists in the Dallas area said they were eager to see prices fall.

"This was getting out of hand," said North Dallas resident Pamela Randall, an insurance salesperson. She filled her 1995 Jaguar at the Fina station on Harry Hines Boulevard and Northwest Highway.

A drop in gasoline prices goes a long way for Ms. Randall, who spends about $40 a week on gas, she said.

"I never did consider canceling a vacation or cutting back on driving," said Ms. Randall, who spent $27.30 for 17.5 gallons of premium fuel.

"It's sure going to be nice when I pay less money for gas," she added. "I can use the money saved for other things."

Kimberly Rew, who drives a cab for a living, washed the windshield of her 1991 Mercury and complained that the increases were eating into her profit.

"This will mean huge savings," said Ms. Rew, who lives in Whitney, near Waco. "I drive about 200 miles a day, and right now I am spending no less than $20 a day."

"Six months ago I was spending no more than $15 a day," she added. "I can't support my two kids and myself if I have to spend most of my money on gasoline."

The Associated Press contributed to this report.