Gas prices hit lowest point since May 3

[CShine]

The average retail price of gasoline fell for the fourth week in a row to $1.937 per gallon, its lowest level since May 3, the government reported Monday.

The nationwide pump price for regular unleaded gasoline dropped by 4.8 cents, but prices still remain 44.1 cents above year-ago levels, according to the Energy Department's statistical arm, the Energy Information Administration.

The biggest declines were registered in the Midwest, where prices fell by 6.8 cents. Fuel costs are highest on the West Coast, where prices average $2.20 per gallon.

The major factors underpinning today's high gasoline prices are strong demand, tight refining capacity and expensive crude oil. On Monday, crude futures on the New York Mercantile Exchange fell $1.12 to settle at $37.63 a barrel.

http://seattlepi.nwsource.com/national/apus_story.asp?category=1110&slug=Gasoline%20Prices

[flamingyouth]

1. I still paid way too freaking much the other day

It's $2.35 in my neighborhood, I drive way out of my way to fill up.

[Heyo]

2. I'm still getting reamed too....

2.09 down here in Boca Raton for regular... around 2.29 for 93...

I'm glad at least *some* of us are paying less than 2 bucks.

Heyo

[Fovea]

3. and soon to be heading back up.

This price is due to chicanery, not the supply/demand reality.

[coloradodem2005]

4. That does not say much.

Considering how high the gas prices have been.

[happynewyear]

5. what a crock o'crap!

Still going for $2.49 here! Where is this price reduction? Haven't seen a cent less anywhere.

Lies, lies, lies and more lies ...

[David Dunham]

6. Troubles in Saudi Arabia and Iraq will drive them back up.

[struggle4progress]

7. Aren't statistics great?

I haven't seen any price drop! :grr:

I bet it just means that people are getting gouged a bit less in the priciest markets!

[VolcanoJen]

8. Prince Bandar?? Is that you?

}(

[leftyandproud]

9. $1.63 today in KY *NT*

[AndyTiedye]

10. No Price Reductions for California or other True-Blue States

they say it's down more than 50 cents in some of the swing states though.

[Almost_there]

11. Sources on the swing state theory...

I have been paying pretty close attention to prices, I do some commodities trading, and I haven't seen anything about swing states being affected.

Much of the price on a gallon is of course taxes, but, the trick to gasoline prices is that the price you are paying today was decided on the futures market about 4 weeks ago. They buy gas futures (we are currently importing a sizeable chunk of pre-refined gasoline, not just light sweet, Brent (North Sea) or Heavy (ie Saudi / Mexican) crude oil. With prices so high, its worth it to actual refine outside the US and bring in pre made gas.

So, we see prices sky rocket as the price of futures go up, since they are betting 3 - 4 weeks out, and they can sort of declare that is what the gas in the ground could possibly fetch, if sold at open market, and prices trickle down because they then play the back end of the futures, declaring we bought this gas at "x" price, and will only lower prices when a truck delivers fuel purchased at the lower price.

It is a total scam, gas at the pump SHOULD cost what they paid, but, its all about contracts, and since they place the order for gas so far in advance, they can work both sides of the system. Most times even, the gas station owner has very little say in what they can charge. The oil company follows the futures market, and they in turn dictate a "system wide" base price, call it $1.10 per gallon, add on $.50 Federal, $.40 state, $.10 local, $.08 Clean Air Act, etc etc and suddenly, you've got $1.90 in Jersey, and $2.49 in California.

Unless the state gov't of a specific state has lowered / lifted their taxes, the gas prices are relatively static system wide.

~Almost

[radfringe]

12. isn't it kind of *funny*

a day or two-three before prices started to drop --some members of Congress wanted to investigate the reasons behind the fuel prices spikes..

lo and behold -- prices started coming down...

coincidence? I think not

for the past few years whenever the prices spike in the spring and/or fall -- we've heard the excuse that it's a switch from one season's blend to the other -- this causes shortfalls and results in price spikes

This year in addition to "seasonal blend changes" - the Iraq invasion and the shut down of refining plants have been added to the "excuse" list. Bandar has stated he would increase output of crude. Something just doesn't make sense -- if there is a lack of refining facilities then it doesn't matter how much crude oil you have stocked up because you don't have the facilities to refine it.

Meanwhile, if you look back over the price hikes and drops -- prices at the pumps drop within a few days of Congress calling for an investigation.

Enron claimed that the "market" had to do with the CA-crisis -- yet we find out later that Enron itself was controlling things and screwing people. Can we really the bush*-Cheney buddies - that fuel prices are entirely caused by the "market"?

[Don_G]

13. Shell In California

Is still closing a refinery citing high costs to bring it up to EPA standards and "no buyers" for the plant.

It's funny how a California politican could find 23 offers from 23 companies to buy the refinery.