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Gas Prices Falling, Lowest Since 2010

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Gas Prices Falling, Lowest Since 2010
[ Business]

There is great news this week for the average Joe! Gas prices are down and will continue to fall…for now. The national average price for a gallon of gasoline is now $3.42, down from $3.59 on September 1st.

This average price is the lowest it’s been at this time of year since 2010, according to AP. Last year at about this time drivers were paying 37 cents/gallon more than they are this year, on average, because Hurricane Irene and refinery and pipeline problems disrupted gasoline production in August and September. California prices rose sharply in late September, then hit a record $4.67 per gallon in early October.

Fortunately for us, there are no such problems this year. However, California drivers are again paying the highest average price, outside of Hawaii and Alaska, at $3.95 per gallon, according to AAA, OPIS and Wright Express. The lucky people of South Carolina drivers are paying the least, at $3.11 per gallon.

Reportedly, Even high oil prices haven’t stopped gasoline’s decline, as oil briefly topped $112 in late August as a U.S. threat of military action against Syria made the market nervous about Middle East supplies. Even though the price of oil has since fallen, it still remains above $100 per barrel, but gasoline has actually dropped to its lowest price since January 31st. In fact, Friday, oil fell 16 cents to close at $102.87 per barrel on the New York Mercantile Exchange.

But, Tom Kloza, Chief Oil Analyst at GasBuddy.com and Oil Price Information Service, which tracks retail and wholesale gasoline prices, remains cautiously optimistic.”It’s a layup for me to predict lower prices until Columbus Day weekend.”

Wholesale gasoline prices have fallen faster in recent days than pump prices, so drivers can expect to pay even less as the pump prices catch up. HIstorically, gas prices tend to decline soon after Labor Day. However, despite the recent drop, the national average is unlikely to fall back to $3.29 per gallon, which was this year’s low, set in early January. That is, unless the price of oil falls under $100 per barrel, GasBuddy’s Kloza said.

This could happen as long as tensions in the Middle East don’t flare up again, and if the hurricane season remains tame. Fortunatley, U.S. oil production is expected to hit a monthly rate in October that the country hasn’t even seen since 1989, and, Saudi Arabian exports typically rise in late fall and in winter as the country uses less oil to generate electricity for air conditioning. This generally makes global supplies higher, but last year gas prices didn’t start going down until mid-October. There are many reasons for this fall’s drop in price, experts say:

For one thing, refiners are allowed to switch to cheaper blends of gasoline in the winter months as clean-air rules are relaxed. Also, gas demand declines in the fall after the kiddies go back to school and summer driving ends, and supplies rise, at the same time, because refiners are still making gasoline as they continue operations to make heating oil for winter and diesel and jet fuel for shippers.

And, this year, refineries have been relatively problem free (knock on wood), as there haven’t been hurricanes, or unexpected problems, explosions, etc. at refineries or pipelines, like there were last year.

Should conditions remain perfect for cheap prices, as they look right now, we could have one of the cheapest driving seasons we’ve seen in a very, very long time! Happy driving!

Image via wikipedia

Gas Prices Falling, Lowest Since 2010
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  • THAD

    DO YOU REMEMBER WHEN GEORGE BUSH WAS RUNNING FOR PRESIDENT HE SAID IF BILL CLINTON GETS BACK IN THE PRICE OF GASOLINE WOULD GO TO 2.00 A GALLON . IF THE PIPELINE BRINGS OIL DOWN THRU THE STATES IS IT TRUE THAT THIS GAS IS GOING OVERSEAS TO MAKE IT A GLOBAL EXCHANGE. EVEN WITH THE SURPLUS GAS THE POLITICIANS IN WASHINGTON WILL NEVER LET THE PRICE OF GAS GO LOWER THAN 3.00 A GALLON. WITH THE ECONOMY SO BAD , NOBODY LOOING FOR WORK , IT DOES NOT SURPRISE ME THAT THEIR IS A VAST SUPPLY GO GAS .WE KEEP GIVING OIL COMPANIES OIL SUBSIDIES OF APPROXIMATELY 1 BIILION DOLLARS A YEAR OUT OF TAXPAYER MONEY. I HEAR THE FARM BILL WAS PASSED AND NOW WE HAVE CITIZENS LIVING IN DOWNTOWN CHARLOTTE REAPING THOUSANDS OF DOLLARS FOR A FARM THAT IS NOT GROWING NOTHING. WAKE UP AMERICA

  • Good News?

    Good news? You have got to be kidding me. Four years ago, I was paying in the low $2 for a gallon of gas. Literally nothing has happened in those four years and gas has nearly doubled. Food prices have also nearly doubled.

    Are Americans this dumb? What has actually happened in 4 years to see the general price level of goods increase by so much? Absolutely nothing.

    Americans have to be the dumbest and most brainwashed people on the face of this planet. They can’t see what is happening even though everything is right before their eyes. Every other country in the world can see what is happening but America just wants to live in a delusion.

  • Really?

    The middle class has been decimated and is the smallest it has been in the history of our nation. It is because of nonsense like this. There is no reason why gas should be over $2 let alone around the $3.50 mark.

    Other than the federal government losing $11.2 trillion dollars (2.3 at the Pentagon and 9 trillion at the FED) and the utterly useless wars we have been fighting for 12 years now —- name me one thing that really should be effecting gas/oil prices?

    American’s have no clue that they are being robbed. We look down on the average felon in prison but really the biggest criminals are running our federal and state governments.

    9/11 was a money and power grab — that is all it was. Don’t allow yourself to be fooled.

    • http://yahoo Random

      I am with you there

  • steve

    The media is so stupid. They are bragging about gas being over 3$ a gallon. Gas was $1.92 nationally on the day court jester was sworn into office in 2009. Of course if you sit on your ass and collect welfare then you probably have no interest in the price of gas or food for that matter.

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