Retail Gasoline Prices Drop 2 More Cents in 2 Weeks

Retail gasoline prices have fallen 2 cents in the last two weeks, contributing to a price decrease of more than 16 cents since Sept. 12, according to a national industry report released on Sunday.

The 2-cent drop, according to the Lundberg Survey of gas prices for the two weeks ended Oct. 24, reflects a continuing decrease since prices peaked in August because of supply problems, and a falloff in crude oil prices in the last two weeks.

In August, during the peak driving season, the East Coast blackouts took several refineries out of commission and a West Coast pipeline was shut to avoid environmental damage.

As of Friday, self-serve regular gasoline showed an average weighted price of $1.56 a gallon, with mid-grade at $1.66 and premium at $1.75, according to Trilby Lundberg, citing a survey of about 8,000 U.S. gas stations by her research firm in Camarillo.

The 2-cent decline was mostly caused by lower prices for crude oil, Lundberg said.

“More than any other factor, gasoline prices do march to crude oil’s drummer,” said Lundberg, who checks prices every two weeks.

Crude oil for December delivery closed Friday at $30.16 a barrel on the New York Mercantile Exchange, down from $31.97 a barrel on Oct. 10. The price of crude accounts for more than two-fifths of the cost of making gasoline.

Gasoline is most expensive at stations in Hawaii and on the West Coast and least expensive in Atlanta, Lundberg said, adding that the U.S. average was about 10 cents higher than a year ago.

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Associated Press and Bloomberg News were used in compiling this report.