Gas prices are continuing to decline, as they have been for much of the summer. Not that we're complaining, it's just that forecasts warned about a possible surge in prices in August and we have been bracing ourselves for the hit.

So, why are they continuing to go down?
The Energy Information Administration (EIA) had reported that gas prices may go up in August if weather disrupts refinery operations, but it hasn't happened yet. Looking at past trends, prices don't consistently increase in August. Since the beginning of the decade, gas prices rose in 2001, 2003, and 2005. They were steady in 2000, 2002, and 2004, and declined in 2006 and so far this year, as well.

Then what would cause a surge?
According to the EIA, weather is one influence. Late summer starts the hurricane season, which runs the risk of impacting refinery operations through power outages.

As people hit the road to try to sneak in their last vacation before school starts, the potential rise in consumer demand can elevate prices.

Another factor is how the prices were earlier in the summer. High prices at the beginning of the season can encourage extra supply to be produced and imported. If the supply becomes abundant, prices move down so long as the demand doesn't continue to meet it. This occurred last year and is happening again this year.

All this means good news for those vacationers trying to enjoy the last bit of summer. Get out now and enjoy a little relief in your wallet before the surge in demand drives prices back up again. And the roller-coaster ride continues...

--Liza Barth