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Impacts Of Libyan Conflict On Gas Prices Still Uncertain

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Gas prices are 35 percent higher than a year ago. Part of the reason is the civil war in Libya, which caused oil production to virtually shut down.

"We are paying about 80 cents more than we were paying last year. And you can blame much of it on the turmoil in the Mid East and North Africa," says John Townsend, manager of government affairs for AAA Mid-Atlantic.

Since Libya supplies seven percent of oil worldwide, some might hope as Ghadafi's regime teeters toward defeat, gas prices would decline.

They are. But that's not why. "We were seeing gas prices edge downward over the weekend. They will continue to do so," he says. "Most of the downward spiral of gas prices are from the fact that we have an end of the summer driving period."

Townsend said it's likely to take one to two years before drivers would see any effect on gas prices from a toppled Ghadafi regime.


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