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Gas Prices Fall Back a Penny

Conservationists blame speculators for high prices

By Joe Benton
ConsumerAffairs.com

July 18, 2008
Gasoline prices retreated almost a penny from the record price of $4.114 set earlier in the week to start with weekend at $4.105 a gallon.

The price of a gallon of gasoline has spent the last 30 days above $4 and the last year above $3. Regular self-serve is up more than 35 percent since last summer.

More than two dozen conservation organizations which opposed renewed offshore drilling, are blaming the gas price run-up on oil speculators.

In a letter to Congress, the conservation groups claim that over the past 20 years, the number of speculators who trade oil on paper has tripled.

"These speculators buy up large amounts of oil and sell it back to each other over and over again. A single barrel of oil may be traded over 20 times before it is actually used. The resulting inflated oil prices end up penalizing drivers at the gas pump," they said in the letter.

"Americans need real relief, not recycled rhetoric," said Robert Dewey, vice president for government relations at Defenders of Wildlife. "More oil drilling on America's coastlines and pristine lands won't save Americans money. What we need is to rein in the rampant oil speculation that's driven prices through the roof."

While that speculation continues, mid-grade gasoline is selling for $4.358 a gallon and premium $4.515 a gallon.

The average price of diesel fuel fell slightly to $4.842 from a record high of $4.845 a gallon, according to the AAA Fuel Gauge Report..

Gasoline prices in Alaska are now $4.65 a gallon, the highest in the country. Hawaii surpassed California as the state in second place with prices hitting $4.484.

California prices fell almost a penny and a half at week's end to $4.480 a gallon.

Drivers in South Carolina find the best bargain at the pump, paying $3.901 for a gallon of regular gasoline.

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

California: Gasoline prices are down for the fourth week in a row in California, according to AAA.

The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $4.491 per gallon, which is 6.3 cents less than last week. In San Diego, the price is $4.458, which is 5.4 cents lower than last week's price.

Santa Barbara still has the most expensive gasoline in California $4.576 but even that price is down 5.7 cents for the week.

The cheapest gasoline in the state is found Yuba City at $4.351, according to the AAA.

Regular gasoline sells for an average price of $ $4.563 in San Francisco, $4.388 in Sacramento and $4.452 in Orange County.

Texas: Drivers in the state continue to pay nearly $4 a gallon for gasoline with the Texas average sitting at $3.98.

Texans are paying nearly $1.04 more for a gallon of regular gasoline than they did one year ago.

San Antonio and Corpus Christi have the least expensive gas. Those cities are reporting a price of $3.95 a gallon.

Gasoline in Port Arthur and Beaumont report the highest average price at $3.99.

"Motorists clearly are driving less and doing much more to conserve gasoline. More people are forming carpools, increasing the number of days they ride share, consolidating trips and public transportation is seeing a big increase in rider ship across the state," said AAA spokesman Dan Ronan.

Florida: Five out of six Floridians worry that gas prices are too high and 62 percent blame the major oil companies.

Floridians also report their driving behavior is changing with fewer unnecessary trips.

Regular gasoline sells for an average of $4.070 a gallon in the Sunshine state. One month ago a gallon of regular cost $4.077 and 1 year a gallon sold for ago $2.971.

Regular gasoline costs $4.151 in Miami, $4.112 in Daytona Beach and $4.001 in Orlando.

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