Gas prices dip a smidge after 27 days of rising

NEW YORK » Gasoline prices have finally dropped after 27 straight days of increases.

The nationwide average for regular unleaded slipped less than a penny Tuesday to $3.764 per gallon. That ended a streak of price hikes that began Feb. 8. Pump prices rose by more than 28 cents per gallon in that period, making gasoline the most expensive ever for this time of year.

(In Hawaii the average price slipped to $4.377 from $4.379 on Monday but still ranked as the highest in the nation. A week ago it was $4.318, a month ago it was $4.153 and a year ago it was $3.882.)

Also Tuesday, oil fell to its lowest price in about two weeks, while the price of natural gas remained near a 10-year low.

The relief at the pump should be temporary. Experts predict that gasoline prices will rise over the next several weeks. The Oil Price Information Service says the nationwide average could peak at $4.25 per gallon in late April, beating the record high of $4.11 per gallon set in July 2008. That will likely keep gas prices front and center in the presidential campaign, and economists will argue their impact on the U.S. economy.

At a White House press conference, President Barack Obama dismissed suggestions by some of his Republican critics that he wants to see gasoline prices rise. No president wants to put more financial strain on American families, especially in an election year, Obama said.

The White House will continue to look for ways to reduce the amount of oil Americans consume, Obama said. The president also asked his attorney general to examine whether speculators were driving up the price of oil.

But "there is no silver bullet" for lowering oil and gas prices, Obama warned.

Meanwhile, the government boosted its estimates for average oil and gasoline prices. The Energy Department said the average price of oil should be nearly $106 per barrel this year, while gasoline should cost an average of $3.79 per gallon. Government data show Americans paid an average of $3.53 per gallon in 2011.

Besides Hawaii, gasoline already exceeds $4 per gallon in California ($4.346) and Alaska ($4.179). It’s close to $4 in several other states, including Connecticut, Illinois, Michigan, New York, Oregon and Washington.

In response, U.S. drivers are driving less and buying less gasoline. MasterCard SpendingPulse, which uses credit card purchases to estimate gasoline consumption, said average gasoline demand fell last week by 6.3 percent when compared with a year earlier.

Benchmark West Texas Intermediate crude, which is used to price oil produced in the U.S., fell by $2.02 to end the day at $104.70 per barrel, the lowest price since Feb. 21.