U.S. gasoline price marks biggest drop ever: survey By Ilaina Jonas
Sun Oct 12, 4:10 PM ET



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.

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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.

HOW LOW CAN THEY GO?

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.

The Lundberg survey evaluates prices at about 5,000 gas stations.

(Reporting by Ilaina Jonas)
http://news.yahoo.com/s/nm/...s_gasprices_lundberg


Now lets do the math 140 a barrel and its 4.00, 77.70 a barrel its 3.29; Supply and demand stupid, huh? See the price went down, with the demand, huh? How about, gas should be nearly 2 dollars even at those prices, not 3.29 average. It never had anything to do with supply and demand.

quote Originally posted by dennis_6: Now lets do the math 140 a barrel and its 4.00, 77.70 a barrel its 3.29; Supply and demand stupid, huh? See the price went down, with the demand, huh? How about, gas should be nearly 2 dollars even at those prices, not 3.29 average. It never had anything to do with supply and demand.

this is a barrel of crude which gets divided into many different things, not just gasoline,

There will also be a lag, that is to be expected. if the crude price locked right now, pump prices would still go down for a while.

Paid 2.79 a gallon for gas tonight.


Sean

I read that somewhere in MN it is 2.32 a gallon, cheapest in the nation. Also farthest away from the refineries, go figure.

I filled up for 2.76 today locally.



Keep dropping!

Not really, the point. If the barrel shot up to 140 bucks it would be 3.99 in a few hours.
Its price gouging. Fine, they have to have enough to pay for the thanker to fuel the station, but they have made thousands off the quick to rise, forever to fall scheme. I have seen gas as low as 2.43 and as high as 3.64 today, driving from Indiana to southwester missouri. It should be right about a 1.99 everywhere now, not 3.64, not 2.43. They have padded themselves the last few years, and will continue to do so as long as the common man/woman will buy the bs, and insult those of us who call it price gouging. /rant

Any time the price falls, it is to the petroleum industries' advantage. Sure, there is "old gas" in storage that cost more and yes it takes time to sell that. But come on, you'd be naive to say the gas stations drop prices as soon as they start receiving cheaper gas. Of course they drag their feet.

It has nothing to do with the "common" man\woman. Aside from the few ignorants, just about everyone in the country allready knows they're being screwed. But the common person has little power to do anything about it. Unfortunately just not buying it isnt realistically viable for most given the spread out nature of america.

The problem is no one who can do anything is willing to 'bite the hand that feeds them'

At anyrate, you are correct, the instant oil goes up, gas prices will. Gas has been 25 cents cheaper for a while now just 60 miles from here, it finally dropped 10cents. I dont know what it is there now.

Aren't the oil barons reducing production? That way it will stabilize the market thus their reasons for exploiting the high gas prices all over again?

quote Originally posted by ryan.hess: I read that somewhere in MN it is 2.32 a gallon, cheapest in the nation. Also farthest away from the refineries, go figure.

Gas Buddy has OKC as the lowest in the Nation. Wichita is 2nd at $2.61 although I saw it in many places at $2.57 today.

http://www.gasbuddy.com/

Yet over here prices just rose again even though it is cheaper to produce. Gotta love them petrol companies.

Should be an interesting week.

I do like the trend.

We can only hope the oil bubble has a serious failure, like the other sectors of the economy and thus brings it back to realistic prices. As for the common man/woman not being able to do anything, look how people get out and protest over enviormental issues, we should have been marching on DC a long time ago. I also wouldn't say its a few ignorants. Get in a conversation about gas prices and 1/3 of the time you hear,
"Its supply and demand, stupid, you obviously don't know how the market works. I bet you believe oil is produced naturally, too! It comes from fossils, hence fossil fuel. duh, man your stupid"

EZ Food Mart, OKC 1401 SW 59th St Reg $2.29

Nice. http://www.twincitiesgaspri.../map_gas_prices.aspx

Bush got blamed for the price rise. Does he get credit for the price falling, now?

Of course not, It was "The One" who smoothed it out somehow with his "devine" power.
Don't know why we are looking for an obama in the middle east, when there is a much more dangerous one running for president.

quote Originally posted by dennis_6: I also wouldn't say its a few ignorants. Get in a conversation about gas prices and 1/3 of the time you hear, "Its supply and demand, stupid, you obviously don't know how the market works. I bet you believe oil is produced naturally, too! It comes from fossils, hence fossil fuel. duh, man your stupid"

Okay, a lot of, nieve might be a better word, people.

And Bush got blamed for everyhing, he is nothing more than a giant scapegoat. If people would stop to think how it really works, they would realize he had as much to do with anything that has happened as he did the color of M&Ms that comes out of he bag. Its not like he can waive his hand and get ANYTHING done, everything has to go through the governmental bodies, and actually, pretty much everything comes FROM those bodies. The president is a small cog in a very big system, and mostly just a showpiece. He can veto something, but that can just as easily be over ridden, he has no direct impact on anything. The WHOLE system is to blame.

But people would rather just have someone to blame.

quote Originally posted by 86GT3.4DOHC: But people would rather just have someone to blame.

Exactly.

We're amazed to see $3.14 here in central Florida . Didn't think we'd ever see that again.
And its predicted to drop below $2.99 soon!
People have been buying less, driving less, so the price dropped.
Bonus: Less traffic on the road.
I'm betting that the price of home heating oil hasn't dropped much, if any.
Gotta support those end of the year bonuses for the Exxon, BP, etc. executives who manipulate the prices in the first place!

[This message has been edited by NEPTUNE (edited 10-13-2008).]

quote Originally posted by NEPTUNE: We're amazed to see $3.14 here in central Florida . Didn't think we'd ever see that again. And its predicted to drop below $2.99 soon! People have been buying less, driving less, so the price dropped. Bonus: Less traffic on the road. I'm betting that the price of home heating oil hasn't dropped much, if any. Gotta support those end of the year bonuses for the Exxon, BP, etc. executives who manipulate the prices in the first place!

Doubt it has very little to do with driving less, it has to do with the economic collapse. Put it this way, if gas remained high right now, and it was already proven to hurt the economy, it would possibly put us into another great depression.
So the powers that be, told the oil companies, speculators, etc.. to back off. Why produce alot to make a little, when you can produce a little and make alotl. Path of least resistance.

quote Originally posted by 86GT3.4DOHC: If people would stop to think how it really works, they would realize he had as much to do with anything that has happened as he did the color of M&Ms that comes out of he bag.

Can Bush get Mars to make green and yellow swirl colored ones? I would like that.

quote Originally posted by dennis_6: So the powers that be, told the oil companies, speculators, etc.. to back off.

So the Illuminati still have everything under control? Good. You had me worried there for a second, dennis_6.

I rode the bike up to Deals Gap yesterday, gas there was 4.08 a gallon. Here in Franklin it has dropped, but the stations still run out of gas and 2 still have 20 dollar limits . Gas here in Franklin,,, 2,99 a gallon.

quote Originally posted by ron768: I rode the bike up to Deals Gap yesterday, gas there was 4.08 a gallon. Here in Franklin it has dropped, but the stations still run out of gas and 2 still have 20 dollar limits . Gas here in Franklin,,, 2,99 a gallon.

But, but, its supply and demand right? Tight supply means prices can't go down right? lol You are not a conspiracy nut, if it is a conspiracy.

quote Originally posted by ryan.hess: Any time the price falls, it is to the petroleum industries' advantage. Sure, there is "old gas" in storage that cost more and yes it takes time to sell that. But come on, you'd be naive to say the gas stations drop prices as soon as they start receiving cheaper gas. Of course they drag their feet.

The old gas may have cost the station more, so they may keep the price higher, until they sell most of it off, and I don't see any problem with that, their cost was higher, and they need to make their money back.

But, on the other side of the coin, why does gas price rise directly with crude prices? They should still have old gas in the tanks that they can sell at the lower price and still make a decent profit. I'm not a fan of government control of anything, but I would almost welcome price controls on gasoline. Either tied (rise and fall) to the price of crude, or a maximum mark up based on the price the stations paid when they last filled their tanks.

Crude prices are down, so need to raise gas prices. ( well, they use any other excuse to do it.. )


Too bad OPEC is meeting to put a stop to it. " lower prices will destabilize the world economy ".. bah.

such complete HorseCrap
WTF has changed between 2 weeks ago, and today?
was a new discovery made? refineries added?
I dont think so. there is NO REASON for these prices shifts - except on whim's.

yes - I am glad the price dropped - but it really leaves me wondering WTF I was buying last month?

quote Originally posted by Pyrthian: such complete HorseCrap WTF has changed between 2 weeks ago, and today? was a new discovery made? refineries added? I dont think so. there is NO REASON for these prices shifts - except on whim's. yes - I am glad the price dropped - but it really leaves me wondering WTF I was buying last month?

Futures markets cause a % of the price. Artificially raised.

Oil opened up this morning @$81/bbl oil futures. The price will ebb & flow a bit with demand and supply, and with the economic outlook. As long as the economy even appears to be declining, oil will stay fairly low, because people will curtail their usage of fuel. We will not see extended periods of cheap oil again, utill alternative sources of energy truly are in place. (how many times have I said this now.)

Now drop the price per gallon to $1.20-1.40 and I'll say yay.

quote Originally posted by ryan.hess: I read that somewhere in MN it is 2.32 a gallon, cheapest in the nation. Also farthest away from the refineries, go figure.

There are two refineries in or near Minnesota. There is one in Hastings MN and one in Superior WI

quote Originally posted by User00013170: Futures markets cause a % of the price. Artificially raised.

exactly - "on whims"

grrrrrrr

this week has shown how much bullslip has been piled onto the last years fuel prices.

Valero gasoline=$2.49 Baytown Texas.

quote Originally posted by InTheLead: Now drop the price per gallon to $1.20-1.40 and I'll say yay.

Sure, untill the economy recovered a little bit. Then china ramps up production toxic paper doll polar bear feeds. The extra oil expended by the bicycles will cause them to raise the price of gas to 4.59 a gallon. The sad part is most people will believe it and state its supply and demand stupid.
I wish the T.V. was never invented, then people might actually have to think for themselves.

quote Originally posted by NEPTUNE: People have been buying less, driving less, so the price dropped.

Maybe a little bit, but not really..

This "market correction" has caused the dollar to strengthen a lot. Which is good, more buying power.

quote Originally posted by InTheLead: Now drop the price per gallon to $1.20-1.40 and I'll say yay.

I tend to agree, if you factor in cost of living/etc i think 1.50 is a fair price to pay.

While I understand peoples disdain for it, I believe the oil market is more complicated than we could possibly nail down unless we actively participate in it,

If any of you do than my apologies but it CANT be as simple as the "oil companies" ruthless drive to screw over americans. This isn't mom and pops general store. An industry this big cannot be that simple.

You ever notice how the popular toy at christmas, is always out of stock. Notice how even though supply is low and demand is high, the price remains the same. You get on ebay and some yahoo has that 15 dollar toy for 380 dollars, because of suppy and demand.

Which is the oil industry more like? They are not nearly as innocent as you believe.

[This message has been edited by dennis_6 (edited 10-14-2008).]