gasoline price marks biggest drop ever

Discussion in 'General Discussion' started by Quigley_Sharps, Oct 12, 2008.

  1. Quigley_Sharps

    Quigley_Sharps The Badministrator Administrator Founding Member

    gasoline price marks biggest drop ever

    NEW YORK (Reuters) - The average price of a gallon of gasoline in the United States recorded its largest drop ever as consumer demand continued to wane and oil prices slid, a prominent industry analyst said on Sunday.

    The national average price for self-serve, regular unleaded gas fell 35.03 cents to $3.3079 a gallon on October 10 from $3.6582 two weeks earlier, according to the nationwide Lundberg Survey.

    It was the lowest national average price since March 21, 2008. Since peaking at $4.1124 on July 11, the average cost of a gallon of gas has receded by 80.45 cents. Diesel fuel fell 21 cents to $3.95 a gallon, the first time since March that it has been below $4.00 a gallon.

    "Plummeting oil prices and caving gasoline demand have combined to bring the biggest retail gasoline price cut in the history of the market," Trilby Lundberg, who compiles the survey, said in an interview. "We've been doing this 58 years. This is truly the biggest price drop."

    On Friday, fears of a global recession helped drive down U.S. crude oil futures prices more than 10 percent to the lowest settlement since September 2007. U.S. crude for November delivery settled on Friday at $77.70 a barrel, down $8.89, or 10.27 percent, on the New York Mercantile Exchange.

    Meanwhile, travel on all U.S. roads fell 3.6 percent, or nearly 10 billion vehicle miles in July, compared with the same period last year, according to the most recent figures provided by the Transportation Department. It was the ninth straight month of declining driving activity.


    Lundberg said the average gasoline price could fall below $3.00 a gallon as early as December.

    "If crude oil prices don't spike, we can expect further price cutting for two reasons," Lundberg said. "Gasoline demand will continue to shrink in our weak economic condition, and retailers, who have been receiving deep buying price cuts, will be anxious to pass through any further price cuts they receive quickly. They need the sales."

    According to the Lundberg survey, drivers in Honolulu paid an average of $3.91 a gallon for unleaded gas, the highest price in the nation. The Wichita, Kansas, region had the lowest average price, at $2.79 a gallon.
  2. RouteClearance

    RouteClearance Monkey+++

    Hopefully this is the one bubble that has finally poped.
  3. Conagher

    Conagher Dark Custom Rider Moderator Emeritus Founding Member

    The Lundberg survey obviously didn't come to my town when gas peaked to $4.59 a gallon for premium unleaded which is what I have to put in my Toyota 4Runner......
  4. dragonfly

    dragonfly Monkey+++

    Here in Phoenix, we have a weird problem....
    I call it 'price fixing", but what do I know....
    Regardless of the current pricing for gas, the circle k stores have what they call a 'strategy'....
    They keep their prices @ .02 above the nearest, (usually across the street), other store and keep their prices high.
    EG: I know of at least 4 stores that do this in a 1 1/2 mile stretch of road, (Deer Valley rd.) From 19th avenue to 35th avenue!
  5. toemag

    toemag Monkey++

    Here in Germany diesel has gone down to €1.27 a litre today, which probably has been a reaction to the financial crisis, the new communist government we have noticed that they are fleecing to much off the populace and they are saving what they would normally spend on other commodities. Well I have news for them less than two weeks ago Petrol (95ROZ) cost over €1,50 a litre, we ain't being clever, we are skinnt, we don't have any money hidden away for a rainy day, we are struggling to survive, and they are responsible for this situation, and yes you need to sort things out before the elections or you will be a distant memory Angie baby.

    Rant over, all is well.

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