
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, February 11, 1991                   TAG: 9102110320
SECTION: NATIONAL/INTERNATIONAL                    PAGE: B-7   EDITION: EVENING 
SOURCE: Associated Press
DATELINE: LOS ANGELES                                LENGTH: Short

GAS PRICES CONTINUE TO FALL AS PRODUCTION RISES

Lower winter demand and increased oil supplies have forced gasoline prices at the pump to drop more than 5 cents at stations nationwide during the past two weeks.

The average price for all grades of gasoline at full- and self-service stations, including taxes, was 125.22 cents per gallon on Friday, according to the biweekly Lundberg Survey of more than 13,000 service stations.

The survey found the price was down 5.13 cents from Jan. 25.

"This drop is much more than often occurs . . . during the usual winter demand slump, so this points to a modest overabundance of supplies," oil industry analyst Trilby Lundberg said Sunday.

Lundberg cited oil companies increasing production to offset the loss of supplies from Iraq and Kuwait. Prices also dropped in part because of lower motorist demand during the winter months, she said.

After Iraq's Aug. 2 invasion of Kuwait, gasoline prices peaked at 147.09 cents on Oct. 19. Prices since have fallen an average of 21.87 cents despite a 5-cent federal gas tax on Dec. 1.

Prices stood at 117.71 cents per gallon on July 20.

At self-service stations, which account for over 80 percent of sales, the average price of regular unleaded gasoline was 112.60 cents a gallon on Friday. Premium unleaded sold for 128.84 cents per gallon and regular leaded was 110.45 cents.

At full-service stations, regular unleaded sold for 142.98 cents a gallon, premium unleaded sold for 156.88 cents and regular leaded was 142.85 cents.

by CNB