As forecast, retail gas prices started to retreat last week and the downward trend is expected to continue throughout the rest of January. Although pump prices will likely fall in the short term, AAA forecast they will peak in Spring when refineries begin the switch to the summer fuel blend and demand starts to pick up. In 2012, the national average peaked at $3.94 in April, but is forecast not to surpass $3.80 this year. In addition, U.S. demand for oil dropped to its lowest level in 16 years, while refinery output rose the most in 150 years, according to the American Petroleum Institute. As of this morning, the lowest gas prices in the local area is at Valero on Hurst Street at 3.19/g, followed by Shell on Tenaha Street near FM 2026 at 3.19/g.