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Pretty Pump Price Seen in Abilene at $1.99




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By Joe Benton
ConsumerAffairs.com

September 18, 2006

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Gasoline is selling for $1.99 a gallon in Abilene, Kansas as prices continue to plummet throughout the country.

Nationally, the price has dropped 44 cents since last month and 37 cents since last year. Some economists say the recent drop in the cost of gasoline gives consumers an extra two billion dollars in buying power each month.

Regular self-serve gasoline is now selling for $2.50 or less in 19 states.

The average national price for a gallon of regular stands at $2.58 with midgrade selling for $2.71 and premium $2.91 a gallon. One month ago a gallon of regular self-serve cost $2.99 and one year ago a gallon cost $2.92.

On the spot gasoline market, prices have fallen 80 cents in recent days producing the largest single monthly change since prices spiked last year following back-to-back hurricanes.

The most expensive gallon of regular self-serve still sells in Kihei, Hawaii for $3.51 and the cheapest gallon of regular is on sale in Abilene for a penny less than $2.

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

California: Some areas of Southern California experienced double-digit declines at the gas pump and the average price of gas in Los Angeles-Long Beach dropped below $3 a gallon, continuing the past month's big price decreases.

The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $2.96, which is 9.4 cents lower than last week, nearly 29 cents lower than last month and 2 cents lower than last year.

In San Diego, the price is $2.92, about 11 cents below last week's price, 35 cents below last month and 11 cents below last year.

On the Central Coast, the average price is $3.17, down 11.1 cents from last week, 23 cents below last month and 9 cents higher than last year.

In the Inland Empire, the average price is $2.97, down almost 10 cents from last week, 30 cents below last month and three cents lower than last year.

"The declining price of oil at $63 per barrel, or $10 less than in July, is fueling the steep decline in gasoline pump prices," said Auto Club spokesperson Carol Thorp. "Also, the price of oil per barrel is falling as futures traders ponder the consequences of a reduced demand for energy and weigh the possibility of an economic slowdown."

Texas: A year after hurricanes shut Gulf Coast refineries and sent gas prices soaring, Texas motorists are paying less for gas than they did 12 months ago, thanks to calmer weather, according to the AAA Texas Weekend Gas Watch.

Gas prices dropped on average between one and two cents a day over the past week, with the biggest decline of 13.2 cents seen in Texarkana.

Corpus Christi again has the lowest statewide average price at $2.39, while El Paso has the state's highest average price at $2.74.

"The fifth consecutive week of price declines has brought the statewide gas price average down by almost 35 cents, and the Texas average price is also nearly 38 cents cheaper than it was a year ago," said AAA Texas spokesperson Rose Rougeau. "The relatively mild hurricane season and fewer supply disruptions have combined to drive prices down."

Florida: The average price of regular self-serve gasoline is $2.70 and the Florida average still remains higher than the national mark.

Pump prices for regular in Florida are higher than in 32 states and lower than those in 18 others including the District of Columbia.

Tourism affects gas prices in Florida more than many other states by keeping demand high year-round. When combined with shipping costs for fuel, tourism helps keep demand strong and puts upward pressure on prices throughout Florida.

Virginia: The cost of a gallon of gasoline continues to fall at self-serve pumps, dropping to an average of $2.41 for a gallon of self-serve regular gasoline in the Commonwealth.

"After six months of misery from skyrocketing prices, consumers are finally sensing they are getting a break at the pumps," said Martha M. Meade, AAA Mid-Atlantic’s Manager of Public and Government Affairs. "Although the price of gasoline has fallen to its lowest level since early Spring, the reality is, however, we are still paying historically high prices for gasoline."

The cheapest gallon of gasoline in Virginia is found in Roanoke at $2.33. The most expensive gasoline sells in northern Virginia at $2.72.

Since last month, the cost of gasoline has fallen 47 cents per gallon in the Commonwealth and 54 cents since last year.

Now consumers are wondering if gasoline prices will continue to fall and reach the two-dollar range by Thanksgiving. That’s the prediction of a leading analyst with the Oil Price Information Service (OPIS), which provides fuel price data to AAA.



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