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Gas prices at two-month low
Iraqi handover eased some traders' concerns that terrorists would harm oil operations

By Bruce Blythe / Bloomberg News

The average U.S. retail price for regular-grade gasoline fell 2.6 cents the past week to a two-month low of $1.895 a gallon, the sixth decline since a record in late May, the government said.

The drop left the nationwide average at the lowest since $1.844 a gallon on May 3, the U.S. Energy Department said in a weekly report in Washington. The price is down 8.2 percent from a record $2.064 on May 24.

In Michigan, the statewide average price for regular unleaded gas was $1.872 a gallon on Tuesday, according to AAA Michigan. Last month, the price of regular unleaded gas averaged $1.988 a gallon in Michigan, according to AAA’s fuel gauge index.

Gasoline prices have tracked crude-oil futures, which fell to a two-month low last week in New York after the United States returned power to an interim Iraqi government ahead of schedule. The move eased some traders’ concern that terrorists would disrupt the country’s petroleum operations.

“Our cost of product has definitely been going down, so that means we’re passing it along to the customer,” said Jenny Love Meyer, a spokeswoman for Oklahoma City-based Love’s Travel Stops & Country Stores. Love’s operates 161 stores in 25 states.

Prices fell across the United States, including a 3.2-cent drop on the East Coast to an average of $1.907, the department said. Gasoline declined 1.3 cents on average to $1.804 in the Midwest and 3.9 cents to $2.136 on the West Coast. In San Francisco, gasoline averaged $2.24, down 3 cents.

The Energy Department’s gasoline average is based on a survey of about 900 filling stations in 50 states.

Retail gasoline prices have risen 41.7 cents, or 28 percent, this year as refiners passed along higher crude costs, fuel reserves lagged normal levels and demand increased. The strengthening U.S. economy has spurred higher demand for motor fuel, hampering efforts to replenish gasoline inventories.

Oil rallied in the past week, a signal that gasoline prices may not decline much more, analysts said.

Crude oil, which makes up more than two-fifths of the retail price of gasoline, on Tuesday reached a five-week high of $39.65 a barrel on the New York Mercantile Exchange, up 22 percent this year.

source
 

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Discussion Starter · #2 ·
How low do you folks remember seeing gasoline in your lifetime?

My earliest memory of taking note of gas prices was about 60 cents per gallon, probably around the mid-1970's.
 

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Discussion Starter · #5 ·
Originally posted by mshu7@Jul 7 2004, 01:52 PM
Well, so much for gas prices dropping here in Indy.  When I came to work today it was $1.70 for 87 octane.  It went up to $1.95 this afternoon!

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Wow! Only $1.95??

Us poor suckers in California have been paying about $2.30 a gallon for awhile now. On the way in today, I saw it down to $2.23. Woo-hoo! :woot2:

Paying less than 2 bucks a gallon sounds like Nirvana. B)
 

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Why did you have to post this! Now gas prices just jumped to $1.96-2.00 a gallon. :eek: I love how the supply and demand thing can happen overnight :rolleyes:
 

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I remember getting gas for .99 cents a gallon in the late late 90s. Anyone remember that? Then there was this thing about there not being enough refineries so it had to shoot up 50% all of a sudden at which point I was going ballistic. 4 years later with plenty of time to get that refining capacity on line they have other excuses - OPEC, China and terrorism. They have really trained us well if we think gas at anything above 1.50 is great. If gas would have reached this price in 2000 there would have been riots but since they eased it on in and have us salivating every time they ring a bell....
 
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