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Gas Prices Drop Below $3

Consumers Expect Lower Prices in September

By Joe Benton
ConsumerAffairs.com

June 22, 2007

• Gas Prices Fall for 37 Days • Gas Prices Slide 8 Percent from Record • Gas Prices Creep Down • Oil Price Trend May Be Good News For Consumers • Gasoline Drops Below $3.90 a Gallon • Gas Prices Pull Back Slowly • Oil Prices Fall As Storm Misses Rigs • Latest Gas Price Round-Up • 'Run Your Car On Water' Scheme Could Leave Consumers All Wet • Unregulated Energy Trading Blamed for Much of Gas Price Gusher • Airlines Join Effort To Limit Oil Speculators • Questions Raised about MyGallons.com • 'Hypermiling' Is Dangerous, Says AAA • Struggling Drivers Blame Washington for High Gas Prices • What’s Really Fueling Those Sky-High Oil Prices • Credit Card Fees at the Pump are a 'Hidden Tax' on Consumers • Survey: 3 Out of 4 Angry About High Gas Prices • $2 A Gallon Gas Possible, Analysts Tell Congress • Speculators Buy More Oil Contracts Than Oil Companies • Saudis to Pump More Oil • Limiting Oil Speculators Gains Ground • Congress To Probe Oil Price Spike • Oil Market 'Saturated,' Iran Claims • Feds See No Relief from High Gas Prices • High Gas Prices Could Mean Lower Insurance Rates • High Gas Prices Good For Kia, Honda • Gas Prices Rip Past $4 and Keep Climbing • Administration, OPEC See Different Causes Of Oil Surge • Feds Probing Possible Oil Market Manipulation • Beware of Fuel Sippers Sipping High-Test • Retailers Respond to High Gas Prices with Discounts, Promotions • Rushing Into a Smaller Car Too Soon May Not Save Money • Hybrid Sales and Prices Climb in Lockstep with Gas Prices • Truckers Bemoan Burden of High Diesel Costs • Gas Prices Biting into Worker Productivity • Consumers Warned About Gas-Saving Schemes • Is Tony Soprano Controlling Gas Prices? • Oil & Gas: The New Bubble • Critics: New Federal Gas Mileage Standard Falls Short • Consumers Feeling Pain of Skyrocketing Gas Prices • New Gas Price Record Forecasts Expensive Summer Driving Season --- • More ...

The average price of a gallon of regular unleaded gasoline has ducked below $3 to $2.99 for the first time this summer.

One month ago regular gasoline cost an average of $3.22 across the country, a penny short of the record set May 24 at $3.23. One year ago regular gasoline sold for $2.84.

The average price for mid-grade is $3.18 and premium sells for $3.29. Regular gasoline is now averaging less than $3 in 29 states.

The least expensive gallon of gasoline is found in Spartanburg, South Carolina for $2.60. The average price for regular gasoline throughout South Carolina is the lowest in the country at $2.80.

The most expensive gallon of regular gasoline is found in Beaver Island, Michigan for $4.51. The highest statewide average price for regular gasoline is found in Hawaii at $3.51.

There are widespread expectations among consumers that prices will drop after Labor Day, according to a new survey. This is the third year gas prices have topped $3 a gallon and consumers have learned to expect seasonal declines in September.

Here is a look at some gasoline prices from around the country in the weekly ConsumerAffairs.com Gas Price Round Up.

California: In the California legislature, Democratic lawmakers moved to curb high gas prices as Republicans accused them of exploiting public antipathy toward oil companies.

The California Assembly passed three bills that would force oil companies to give regulators more information about refinery shutdowns, prices and inventories, and would trigger a study of whether consumers are being overcharged in hot weather when gasoline expands. Legislators said such information could alert authorities that the market was being manipulated.

While the legislature debated, gas prices in California continued dropping steadily for the sixth straight week, bringing several stations across the Southland below the $3 mark for the first time since March, according to the Automobile Club of Southern California's Weekend Gas Watch.

The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $3.19, which is 6.4 cents cheaper than last week, 26 cents below last month, and 3 cents under last year.

In San Diego, the price is $3.17, which is 7.1 cents below last week's price, 28 cents under last month, and 6 cents cheaper than last year.

On the Central Coast, the average price is $3.41, down 3.9 cents from last week, 17 cents under last month, and 2 cents higher than last year. In the Inland Empire, the average price is $3.16, 7 cents below last week, 28 cents under than last month, and 9 cents cheaper than last year.

"Prices are still almost 30 percent higher than they were at the end of January, when the spring price spike began and the statewide average was $2.52," said Auto Club spokesperson Carol Thorp. "Oil industry analysts reported this week that gasoline and crude inventories are higher compared to last month."

Texas: Retail gasoline prices continued to ease for the fourth week in a row across Texas this week.

The weekly AAA Texas gas price survey released reports retail prices of regular-grade gasoline averaged $2.91 cents per gallon in the eleven Texas cities surveyed. That's 4 cents less than last week.

El Paso has the state's highest average retail price for regular grade at $3.13 cents per gallon. Corpus Christi saw the lowest average price of $2.78 cents per gallon. Both are down 6 cents from last week.

Florida: Floridians are concerned that gas prices will affect consumer spending and travel again this Fourth of July.

Spending Plans Afffected

A National Retail Federation survey warned that more than 42 percent of respondents said gas prices will impact their spending this July 4.

Nevertheless, while many consumers said they are watching the gas tank by driving less and taking fewer shopping trips, more than 11 percent said they will travel this holiday.

The majority of consumers, more than 61 percent, said they will attend a cookout, nearly 43 percent said they will watch fireworks and nearly 10 percent said they will attend a parade.

But the U.S. Energy Information Agency also warns that Middle East instability, problems at refineries and hurricanes can all drive gasoline price up rapidly.

Right now, the average national price for a gallon of self-serve regular gasoline is $3.03. One month ago regular sold for $3.10 and one year ago a gallon of regular cost $2.89.

Mid-grade gasoline now averages $3.22 and premium is selling for $3.33.

Average gasoline prices have dropped below the $3 mark in 23 states with cheapest gallon of regular on sale in Laredo, Texas for $2.53. The most expensive gallon of regular is found in Mill Valley, California for $3.89.

Here is a look as some prices from around the country in the weekly ConsumerAffairs.com Gas Price Round Up.

Texas: Retail gasoline prices have decreased after setting record highs less than a month ago. This is the third straight week gas prices have gone down in Texas.

The statewide average for a gallon of regular self-serve gasoline fell six cents to $2.95, according to AAA Texas' Weekend Gas Watch. That is 13.7 cents lower than last month's all-time record high of $3.09 per gallon.

El Paso has the highest average gas prices at $3.19 per gallon, a six cent decline from last week, and Corpus Christi has the cheapest gas at $2.84 per gallon, down nine cents.

California: Southern California pump price averages are still well above $3 but many individual stations are within striking distance of $2.99 as prices tumbled by more than a penny a day in the past week, according to the Automobile Club of Southern California's Weekend Gas Watch.

The average price of self-serve regular unleaded gasoline in the Los Angeles-Long Beach area is $3.26, which is 7.8 cents cheaper than last week, 22 cents below last month, and 2 cents under last year.

In San Diego, the price is $3.24, which is 8.8 cents below last week's price, 25 cents less than last month, and 5 cents cheaper than last year.

On the Central Coast, the average price is $3.45, down 4.8 cents from last week, 16 cents under last month, and 3 cents higher than last year.

In the Inland Empire, the average price is $3.23, 8.6 cents below last week, 25 cents less than last month, and 7 cents cheaper than last year.

"It's rare for gas prices to come down this quickly," said Auto Club spokesperson Carol Thorp. "Significant drops in the wholesale gasoline market in California are making these decreases possible, and we are experiencing our fifth straight week of price declines."

Florida: In the last week motorists have enjoyed some relief to rising gasoline prices in the state.

A check in Brevard County showed a gallon of regular unleaded gasoline was selling for about $2.90 cents a gallon. Just 10 days ago, prices were about $3.05 a gallon.

Statewide, regular gasoline averages $3. Mid-grade sells for $3.24 and premium $3.31.

A year ago, a gallon of gasoline in Florida was selling for an average $2.86 a gallon.

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