Gasoline prices could keep falling

By James R. Healey, USA TODAY

Gasoline prices are falling fast and could keep dropping for months.

"The only place they have to go is down," says Fred Rozell, gasoline analyst at the Oil Price Information Service (OPIS). "We'll be closer to $2 than $3 come Thanksgiving."

Travel organization AAA foresees prices 10 cents a gallon lower by the end of next week. It reported a nationwide average of $2.84 Tuesday, the lowest since April 20.

PRICE HAPPY: OPEC president says $70 a barrel oil price is satisfactory (http://www.usatoday.com/money/industries/energy/2006-08-30-OPEC-prez_x.htm)

It's good news for consumers and the economy. Continued lower prices "may act like a tax cut" and stimulate spending, says Richard DeKaser, chief economist at National City in Cleveland. He calculates that higher energy prices the first six months cut growth of consumer spending 1 percentage point.

The U.S. average for a gallon of regular peaked this year at $3.036 Aug. 10, according to OPIS/AAA daily surveys. That's slightly under the high of $3.057 Sept. 5, a week after Hurricane Katrina battered petroleum production in the Gulf of Mexico and caused fears of fuel shortages.

OPIS' Rozell figures prices will jump again next spring.

Behind the current drop:

•The end of summer. Driving slows, reducing demand for gasoline. And federal requirements for clean air, summer-blend gasoline end next month, making gasoline cheaper to refine and import.
•Sluggish demand. Gasoline use in the first eight months of the year is up 1% vs. a year ago, less than the 1.5% to 2% growth that's typical, says Michael Morris, analyst at the U.S. Energy Information Administration. "Wholesalers are trying to get rid of product. The growth in demand for gasoline has really tapered off," he says.
Wholesale prices are falling faster than retail gasoline prices, meaning stations are making more money than when prices were $3. Wholesale prices Tuesday ranged from $1.77 to $1.79 a gallon, well below the $2-plus prices typical until recently.
•Petroleum traders, worried that prices are too high to last, are selling their holdings. That pushes prices down. They also believe hurricanes won't disrupt Gulf of Mexico production, OPIS senior analyst Tom Kloza says.

Crude oil, which accounts for roughly half the price of gasoline, ended New York trading Tuesday down 90 cents, at $69.71 a barrel. That's the first time it's closed at less than $70 since May 4.

That makes me sooooo happy! :woohoo: I saw it at $2.99 a gallon today and I freaked :lol:

That makes me sooooo happy! :woohoo: I saw it at $2.99 a gallon today and I freaked :lol:

$2.99?! I've got $2.72 down the street.

we've got it for $1.89 on base.

we've got it for $1.89 on base.

Another reason to join the Army. Damn, I'm starting to make a list...

I guess they no longer have to gouge us for filling up the tank for the long trips to the beach...

;)

It's $2.40 at some places around here.

$70 a barrel is satisfactory? I remember when they said $30 was good, and that was only a few years ago.

:eek: Nice to hear that. Hopefully the prices continue to fall.

2.40 here... i was so happy!

That is good news I think its 2.99 here where I live

The lowest I've seen it so far is $2.77. I have been waiting for it to jump back up again.

YAY, I can buy more TV DVDs now :D

$2.58/gal here in Bowling Green, KY

wow, you people are lucky. It's still holding on to $3.09 here. and that's the absolute cheapest for midgrade.

I've been buying gas in $2.65 per gallon range for the past week!!! :clap

Great. . . that means more SUV's and more dirty air. :( And les incetive for walkable neighborhoods and public transportation. Only in America. . . .

Here is our gas stuff in Albany NY:


The gasoline tax cap was supposed to help those filling up in Albany County. But Albany County Comptroller Mike Conners says after two months the tax cap isn't making any sense—mainly because it isn’t saving anyone any cents.

“The logic is inescapable. If we drop the taxes by three cents here, our intent was to save the driving public three cents, not put three cents more profit through the system,” Conners said.

But that's what the comptroller says is happening. Using prices from earlier in the week, he says the average price for one gallon of regular unleaded gasoline in Albany County is $2.98, 1 cent higher than the $2.97 average in Rensselaer County where the county gas tax is not capped.

“The math is simple. If Rensselaer County does not have a cap and Albany County does and we're paying more money than they are, something is wrong somewhere,” motorist Gerry Nason said.

Conners says what would make sense is to break down the price at the pumps. By including the wholesale price along with all the different gas taxes and the profit margin, he says maybe then would the price come down.

“That savings has gone up in smoke, it’s gone up in the profits of the oil industry and that’s why pricing transparency is one small way to put pressure for them to do something,” the comptroller said.

But if that can't be done drivers like Nason would just rather see the cap disappear all together.

“It’s not saving us any money. People will drive down the road to Troy and Rensselaer County and buy their gas there. So its either we make the tax so it works or else why bother?” Nason said.

Conners hopes to talk with Albany County legislators about ending the cap. He hopes his latest information will help further those discussions.

I can't drive but our transit system has raise fares for the past years which is 25 percent increase with service at the same level as before.

I've noticed the prices dropping around town. The average was at $2.99, and now it's around $2.87. Good to hear! I am already a bit lower than a quarter of a tank of gas, so I will fill up at a slightly lower price this weekend. Awesome news.

I paid $2.14 today :eek:

Here in Dayton I spotted $2.179 at a Speedway station south of town.

According to www.columbusgasprices.com (http://www.columbusgasprices.com), part of the Gasbuddy (http://www.gasbuddy.com) family of gas price sites, it's $2.00 in Westerville (north of C-bus).

$1.999, anyone?

I know when I went to Cleveland today, I passed prices all over the place. From $2.49-2.14. There were a couple places that were $2.19 when I went in the morning and were down to $2.14 in the evening.

I filled up yesterday and it was $2.75 a gallon and I was happy, but I hope it will go lower.

It was 2.39/gallon when my friend drove me home about 30 mins ago.

So far, the lowest price I have seen is for $2.49. It seems to be falling quickly, so I wouldn't be surprised if it'll change over the weekend.

This morning I rode by a GUlf station on the lower east side (under the FDR highway) and regular gas had dropped to $3.09 a gallon there.

For that place, that is a bargain.

;)

Just in time for elections!

WOW ITS 2.30 HERE

Just in time for elections!
http://img411.imageshack.us/img411/2853/garnersb4.jpg

I predict that gasoline prices will go back up on November 8 - the day after the election!

Low gas prices will be good for Rpeublicasn becasue no one will compalin aboutthe economy. But low gas prices will be good for Democrats too because more people will buy SUV's again, which means UAW workers will make extra money, and they'll get to keep their jobs - which helps the UAW and other Detroit-related unions!

But low gas prices are bad for America because it encourages too much driving when we should start considering more mass transit and more walakble town and neighborhood development to reduce our dependence on foreign oil.

Not gonna happen - this is America! :wallbang

$2.89 here.

I predict that gasoline prices will go back up on November 8 - the day after the election!

Low gas prices will be good for Rpeublicasn becasue no one will compalin aboutthe economy. But low gas prices will be good for Democrats too because more people will buy SUV's again, which means UAW workers will make extra money, and they'll get to keep their jobs - which helps the UAW and other Detroit-related unions!

But low gas prices are bad for America because it encourages too much driving when we should start considering more mass transit and more walakble town and neighborhood development to reduce our dependence on foreign oil.

Not gonna happen - this is America! :wallbang

I agree. The great thing about Chicago is that you don't need a car because of the huge availability of public transportation throughout the city (CTA and PACE busses, the L, Metra, etc.) Out here everything is so car oriented, which only encourages sprawl and unwalkable neighborhoods. But we finally passed a bill which will give up 10 light rail lines througout the metro area, aiming for cleaner air, less traffic on the highways, and the end of suburban sprawl...hopefully.

I agree. The great thing about Chicago is that you don't need a car because of the huge availability of public transportation throughout the city (CTA and PACE busses, the L, Metra, etc.) Out here everything is so car oriented, which only encourages sprawl and unwalkable neighborhoods. But we finally passed a bill which will give up 10 light rail lines througout the metro area, aiming for cleaner air, less traffic on the highways, and the end of suburban sprawl...hopefully.

Ten new light rail lines? That's great news for the Chicago area! :cool: party:

Filled up the tank yesterday in the next town over....$2.26 for Reg.

Ten new light rail lines? That's great news for the Chicago area! :cool: party:

Oh no, sorry to confuse to. There are ten new light rail lines coming out here, in Denver, CO. Chicago already has more than enough rail cars, tho light rail would be nice too so theyc an start phasing out the old, heavy rail cars.

I predict that gasoline prices will go back up on November 8 - the day after the election!

I doubt it. The gasoline prices depend on how much a barrel of oil is selling for and a small group of speculators who bid up the price when any kind of crisis or alleged crisis happens.

Not gonna happen - this is America! :wallbang

You're dang right this is America... thank God for America!...

"God bless America,
My home sweet home" :yippee: patriot:

"America! America!
God shed His grace on thee,
And crown thy good with brotherhood
From sea to shining sea."

C'mon, Steve... sing along with me!

So Fleet, you think it's un-American to want more walkable neighborhoods and more mass transit so you don't have to put so much wear and tear on your car and you can meet someone while walking on the street or riding on a bus (that's how my aunt and uncle met!), that it's un-American to drive a Smart car to save gas? Wasn't it Judy Garland who sang about the joys of riding the trolley in Meet Me InSt. Louis, or maybe that's too. . . gay?

Cheap gas means more suburban sprawl, which is ugly and tawdry and is destroyign the quality of life in America.

Czas - Yeah, I thought "out here" meant the Chicago suburbs. I forgot you were from COlorado. Ten light rail lines for the Boulder area is good too! :)

So Fleet, you think it's un-American to want more walkable neighborhoods and more mass transit so you don't have to put so much wear and tear on your car and you can meet someone while walking on the street or riding on a bus (that's how my aunt and uncle met!), that it's un-American to drive a Smart car to save gas?

Just where did I say more mass transit is un-American? You should be more concerned about the millions of illegal aliens sneaking across the border than mass transit. And I notice you didn't want to join in on the song. :p Kind of tells me something right there.

Wasn't it Judy Garland who sang about the joys of riding the trolley in Meet Me InSt. Louis, or maybe that's too. . . gay?

:rolleyes:

Cheap gas means more suburban sprawl, which is ugly and tawdry and is destroyign the quality of life in America.

And expensive gas hurts businesses and consumers which in turn hurts the economy.

According to www.cincygasprices.com (http://www.cincygasprices.com) (part of the Gasbuddy family of gas price sites) two stations in Oxford, Ohio, are currently $1.999. The $2 barrier has been cracked, at least in Ohio!

Here in Dayton the lowest I've seen so far is $2.179. :rolleyes:

This is like a wet dream for an urban-planning fanatic like me.

http://img.photobucket.com/albums/v205/CzasNaZywiec/Downtown%20Denver/FasTracks.gif

The only lines existing now are the orange and the top half of the light blue line, sadly. Just a matter of time now, tho. :D

On Rush Limbaugh's Friday show he mentioned that gas hit $1.969 somewhere in Iowa.

According to www.cincygasprices.com (http://www.cincygasprices.com) (part of the Gasbuddy family of gas price sites) two stations in Oxford, Ohio, are currently $1.999. The $2 barrier has been cracked, at least in Ohio!

Here in Dayton the lowest I've seen so far is $2.179. :rolleyes:

Its $2.02 in Ohio someplaces here. Still $2.39 in others.

$2.19 in Glasgow, KY. $2.29 in Bowling Green, KY. GasBuddy says $2.05 in Lexington, KY.

http://www.kxly.com/news/index.php?sect_rank=2&section_id=560&story_id=4842

Cantwell asks feds to study high Eastern Washington gas prices

The Associated Press

SPOKANE -- Senator Maria Cantwell today asked a federal commission to investigate why gasoline prices are some 30 cents per gallon higher in the Spokane area than in the Seattle area.

She says gas can be purchased for less than $2.70 per gallon in much of Western Washington, but averages $3.04 per gallon in Spokane.

Cantwell wants the Federal Trade Commission to find out why.

Cantwell is running for re-election against Republican Mike McGavick.

She says that, historically, gas prices in Seattle and Spokane have been about the same.

Thats fnunny, they are doing the same thing here. Its still $2.39 here, but if you go right to the next county its only $2.02.

At last! $1.999 fever has reached Dayton! There are three stations in Huber Heights and Riverside (northeast of the Gem City) with that price!

$1.99? Wow....

I was out of town since early Friday, but when I got back, I see it's dropped about 10 cents. I saw $2.55 at one Texaco. I'll find out about the others later today.

$2.12 here!!!

party: