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Gas Prices Hold Steady as Consumer Confidence Rises

By Joe Benton
ConsumerAffairs.com

October 27, 2006

• Gas Prices Head Lower as Economy Slows • Gas Price Declines for 9 Days • Gas Prices Continue Downward Trend • Oil Prices Surge By Record $25 a Barrel • Gas Prices Drop for 5 Days • Price-Gouging Probes Spread to 6 States • Investigations of $5 Gas in North Carolina, Florida, and Virginia • Shortages, Price Hikes Follow Ike in Southeast • States Investigate Gasoline Price Gouging Claims • Pumping More U.S. Oil Won't Lower Prices, Consumer Group Says • Oil Prices Fall, Gas Prices Surge • Gas Prices Slide 8 Percent from Record --- • More ...

Tumbling gasoline prices pushed consumer confidence in the U.S. to the highest point in 15 months. The University of Michigan index of consumer sentiment increased to 93.6, the highest level since July 2005.

At the same time, gasoline prices have declined to the lowest levels of the year encouraging consumers to keep up their spending that accounts for 70 percent of the economy.

The price of crude oil is on the rise again, however, suggesting that prices at the pump could soon follow.

The average price of a gallon of regular unleaded gasoline has not changed in three days and is now $2.20, according to AAA, of Hawthorne, Fla.

Midgrade gasoline stands at an average of $2.34 a gallon and premium at $2.42. Both are unchanged from the nation's average three days ago. Diesel fuel averages $2.61 a gallon and is also unchanged from three days ago.

The most expensive gallon of regular gasoline is on sale for $3.35 a gallon in St. Thomas, Virgin Islands. The lowest price is $2.07 a gallon for regular unleaded in Travelers Rest, South Carolina.

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

California: Gas prices have declined so rapidly in California during the past two-and-a-half months that California motorists are now in the rare position of paying less for gasoline than residents in six other Western states, according to the Automobile Club of Southern California's Weekend Gas Watch.

"Typically, Californians pay the second-highest gas prices in the country behind Hawaii motorists," said Auto Club spokesperson Jeffrey Spring. "But because California prices have declined at such a rapid pace over the last 10 weeks, local drivers are now seeing lower prices at the pump than motorists in Hawaii, Alaska, Idaho, Nevada, Oregon and Washington."

California's statewide average is at $2.46 a gallon, while the other higher statewide averages are: $2.47 in Oregon, $2.47 in Idaho; $2.488 in Nevada, $2.51 in Washington, $2.70 in Alaska and $2.94 in Hawaii.

The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $2.47, which is 6.2 cents lower than last week, 33 cents lower than last month, and 37 cents lower than last year.

In San Diego, the price is $2.43, 4.2 cents below last week's price, 28 cents below last month, and 43 cents below last year.

On the Central Coast, the average price is $2.75, down 4.9 cents from last week, 27 cents below last month, and 20 cents lower than last year.

In the Inland Empire, the average price is $2.43, down 6.7 cents from last week, 32 cents below last month, and 44 cents lower than last year.

Texas: The statewide average price for self-serve regular gasoline is $2.08 a gallon, which is two cents less than last week and 46 cents less than last year. In Corpus Christi, the average dipped below $2.00 a gallon to $1.99, a weekly decrease of two cents.

The Austin-San Marcos area edged past El Paso this week to have the highest average on the survey at $2.18 a gallon -- down three cents.

"Texas motorists have continued to see pump prices drop for twelve consecutive weeks," said AAA Texas spokesperson Rose Rougeau.

Kentucky: After dipping below $2 at some stations this week, Louisville gasoline prices jumped to about $2.27 per gallon following a report showing shrinking fuel inventories.

"We saw an increase at the pump and an increase in the price per barrel" of crude oil, AAA Kentucky spokesman Roger Boyd said.

"There are plenty of supplies of fuel," he said. "There's nothing out there to indicate that prices are going to continue to rise."

Despite the sharp increase, there is still relatively inexpensive gas to be had throughout the area. Many grocery stores and discount clubs offer less costly fuel.

Sam's Club, for example, was selling gas for $1.91 for members and $1.94 for nonmembers early yesterday. The newly opened Costco store also was selling gas for $1.94.

Oregon: Oregon's statewide average price for a gallon of regular gasoline fell below the $2.50 mark, and now stands at $2.48, down more than 6 cents during the past week. The decline has slowed somewhat.

Energy analysts say the continued price decline is due, in part, to oil and gasoline inventories that strengthened in recent months. In addition, U.S. gasoline imports have been strong as other nations take advantage of robust profit margins. Less consumer demand and increased use of ethanol, which displaces gasoline, also contribute to the rise in available fuel supplies.

What all this suggests is that motorists should expect prices to continue to fall as the Thanksgiving holiday approaches, said Elliott Eki, AAA Oregon spokesman.

Since Oregon's average price hit $3.11 in late May, it has gone down 63 cents per gallon.

At $2.48, Oregon's statewide average price ties Idaho's for 5th highest in the nation. Hawaii has the highest average price at $2.93, followed by Alaska at $2.66, Nevada at $2.50, and Washington at $2.52. California's statewide average dipped to $2.48. South Carolina and New Jersey, the only other state that prohibits self-service, have the lowest statewide average price at $2.05.

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