Gas at $3.50/Gallon or Lower by July 4: Gulf CEO
The price at the gas pump will fall from the current $3.80 per gallon national average to $3.50 or lower by July 4, Gulf Oil Chief Executive Joe Petrowski told CNBC Thursday.
"I think there are lots of indications from a fundamental standpoint that the tide has turned and the next move down on oil is going to be lower, maybe much lower," he said.
He said gas hitting $4 was "definitely the tipping point" because demand at Gulf pumps in many areas was down as much as 9 percent to 10 percent year over year, which he said was "actually worse than 2008."
Consumers cut back on their driving or changed their driving habits, he said. In the Northeast, where most of Gulf's gas stations are located, weather was also a factor.
Gulf and other companies are working to incorporate more alternative fuels into their products, including natural gas and ethanol blends. "That’s one of the reasons that oil is going to turn down," Petrowski said. "We have ethanol, with the tax credits, at 70 cents below the cost of gasoline."