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Labor Day Gas Prices Up a Penny

Gustav brings concern about supply, prices




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By Joe Benton
ConsumerAffairs.com

August 29, 2008

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Gasoline prices rose by almost a full penny following 43 consecutive days of declines as Gustav takes aim at the oil rich Gulf Coast.

The storm evokes memories of Hurricane Katrina 3 years ago. Katrina devastated New Orleans and crippled U.S. oil production sending gasoline prices above $3 a gallon for the first time in the history of the country.

Oil companies are pulling workers from drill rigs in the Gulf of Mexico. and while the track of the storm remains uncertain, forecasters suggest Gustav could hit the U.S. coast anywhere from Corpus Christi, Texas, to Panama City, Florida. Oil refineries are located along much of that part of the Gulf Coast.

As Gustav moves through the Gulf of Mexico, the average price of regular unleaded gasoline in the U.S. is now $3.669 a gallon, according to the AAA Fuel Gauge report.

One year ago a gallon sold for $2.769, 33 percent less than the current price. Mid-grade gasoline sells for $3.827 and premium costs an average of $3.942 a gallon.

Diesel fuel sells for and average price of $4.270 a gallon across the country.

Alaska remains the state with the highest average price for gasoline at $4.523 a gallon. Consumers in Missouri pay the least for regular self-serve at $3.464 a gallon.

The cheapest regular self-serve in the U.S. is found in Woodbury Heights, N.J. where a gallon of gasoline sells for $3.210.

Gas Price Roundup

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

California: Californians heading out for the Labor Day weekend will pay an average price of $3.924 a gallon for regular gasoline. The statewide average price has now declined for the tenth week in a row.

Even with the price drop, fewer people across the state plan to travel by car over the holiday.

"We are expecting a slight decline of 1.4 percent in the number of travelers this Labor Day weekend, at least partly because of the gas prices that motorists have been paying all year," said Jeffrey Spring, a spokesman for the Automobile Club of Southern California.

"However, the freeways will still be crowded with travelers this weekend. To save gas, time and money, drivers should try to travel during off-peak periods," he said.

The average price of self-serve regular gasoline in the Los Angeles area is $3.897 per gallon, which is 7.9 cents less than last week. In San Diego, the price is $3.868, which is 5.5 cents under last week's price.

The highest gasoline prices in California are still found in San Francisco at $4.106, a drop of 7 cents from last week. The lowest gasoline prices in the state are found in Modesto at $3.837, almost 4 cents less than last week.

Texas: Texans are continuing to see significant relief at the gasoline pump as prices statewide fell more than 7 cents last week, pushing the average price of a gallon of unleaded regular to $3.47.

This week Houston had the least expensive gas at $3.39 where prices dropped 9 cents. El Paso had the most expensive gas at $3.60 but prices fell slightly more than a nickel during the week.

Labor Day weekend traditionally marks the end of the summer driving and vacation season and AAA Texas is predicting about 2.55 million Texans are expected to make end-of-summer trips this weekend, down by about 1.1 percent.

"Many Texans still plan to travel over the holiday, but high gas prices and a slower economy means more of them are taking trips closer to home. Even as oil prices on world markets have moved up and down this week in anticipation of Gustav, the cost of gasoline is dropping. The storm is a wildcard and AAA Texas is watching where it might make land and how it could impact drivers, especially if people are required to evacuate," said AAA Texas spokesman Dan Ronan.

Florida: Gas prices are likely to head up in the state after Gustav hits the Gulf Coast.

Uncertainty about gas prices comes as an estimated 1.9 million Floridians prepare to travel at least 50 miles this Labor Day weekend, 1.6 million of them by car.

Florida's average for regular gasoline is $3.670 a gallon, down from $3.95 a month ago, but well above the $2.71 average of a year ago, according to AAA's Fuel Gauge Report.

"If we see crude oil prices reacting, especially if there is a sharp increase early next week, retail prices will follow quickly," said Gregg Laskoski, spokesman for AAA Auto Club South in Tampa.

Regular self-serve gasoline sells for $3.865 in Daytona Beach, $3.760 in Miami and $3.612 in Orlando.



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