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Analysts: Gas Prices Shouldn't Be This High

October 8, 2012, 10:00 PM by Don Jorgensen

Analysts: Gas Prices Shouldn't Be This High

What's going on with gas prices? Analysts say we shouldn't be paying as much as we are right for a gallon of regular unleaded gas.

In Sioux Falls, the average price is $3.73. Rapid City is $3.72. Aberdeen is $3.90. Onida has the most expensive gas at $4.15. The cheapest is in Garretson, where a gallon of gas is $3.67.

Experts were predicting prices would drop after Labor Day, but say there's no explanation as to why prices are this high this time of year.

Robert Olender, who is vacationing in the Black Hills, says gas prices have affected the way he travels. He and his wife stay in cheaper hotels to offset some of the high costs of gas. 

"It's discouraging considering this time of year.  Economically people are struggling and this is not the time of high tourist travel so you'd think you'd get prices a lot lower," Olender said.

Others are just as confused.

"I don't know what's causing it, if there's a refinery not working or what it is, I don't know," Bruce Symington of Hot Springs said.

"Historically, they always come down after Labor Day," Marilyn Buskohl of AAA said.

Buskohl says South Dakota has seen the sixth largest decline in the nation, 4.5 cents in the last week, but says the prices aren't nearly where they should be.

"Normally after the summer driving season is over and they've switched over to making winter blends that will drive the prices down a little bit, but we haven't seen that so far," Buskohl said.

The price of crude oil has also gone down nearly $10 a barrel in the past few weeks, but that's not showing up at the pump; not yet anyway.

"We expect gas prices will decrease, but I think they are going to remain pretty high for awhile," Buskohl said.

That's not good news for travelers like Olender, who has a long way to go to get back home.

South Dakota's average price for a gallon of regular unleaded is $3.81 up 31 cents from a year ago. That's also the national average.

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