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Gas Prices Crash: Down 46 Cents On Average

Gas Prices Crash: Down 46 Cents On Average

A gas prices crash has caused overall gasoline fuel costs to plummet 46 cents a gallon average over the past two months. The average price of a gallon of regular gasoline is $3.38, down nearly a dime over the past three weeks. Unfortunately, the national average is still about eight cents higher than the average a year ago.

The Lundberg Survey tallies prices at thousands of gas stations nationwide. Crude oil prices have also dropped after having risen steadily, lending impetus to the gas prices crash. Gas prices at the pump should drop even more in the coming days as refiners cut how much they’re charging distributors and retailers.

“This has been a true gas prices crash,” said Trilby Lundberg, publisher of the Lundberg Survey. “This crash began back when refining problems around the country were being fixed, one after the other, at the same time that our seasonal gasoline demand was shrinking.”

As previously reported by The Inquisitr, the high gas prices are primarily caused by speculators investing into crude oil stocks in the Futures markets. Taxes on gas are lower now than four years ago, and they are far lower percentage wise compared to many other countries. The refinery cost/profit is less than half but the retail sale factor was the largest significant increase. Thus, according to our analysis, the gas price increase has occurred between the local markets and refineries. This is probably due to the US not having enough refineries in comparison to other developed countries, which are actively building new refineries, and supply chain issues. The overall efficiency of American refineries has increased though.

Even after the gas prices crashed, Long Island, New York, had the highest average in the latest survey, at $3.85. The lowest average was in Memphis, Tennessee, at $3.04.

Here are average gas prices in some other cities:

• Boston – $3.59

• Baltimore – $3.34

• Atlanta – $3.27

• Baton Rouge, Louisiana – $3.11

• St. Louis – $3.05

• Salt Lake City – $3.40

• Los Angeles – $3.68

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Comments

33 Responses to “Gas Prices Crash: Down 46 Cents On Average”

  1. Gary Middleton

    Trilby Lundberg, is wrong memphis is not the cheapest.. that would be pigeon forge tn at fast stop 2586 Parkway & Wears Valley Rd price is $2.98… highest is $3.19 at Exxon.
    265 Old Mill Ave & Teaster Ln gas buddy.

  2. John J Fretwell III

    Yea ok a barrel of oil went up today to 86.59 since this morning..the speculators will won't let it go to far down they will make it go up real fast.

  3. Joey Pleska

    Amen! I think we have been getting screwed long enough! There is no reason for it! The U.S. is the leading producer of oil, HELLO! Am I missing something here? Keep lowering prices to a respectible level and watch the economy boom! It's not rocket science……comon greedy oil companies aren't you rich enough?

  4. Esat Vinca

    THE ONLY REASON THEY WENT UP SO HIGH WAS TO PAY FOR THE WARS. NOW THERE GONNA DOWN EVEN LOWER.

  5. Robert Rozell

    I would normally agree with Fretwell, but this shale oil thing is rushing pushing inventories up in the US. Some projections say that it will only be a very short time that we will not import oil anymore.

  6. Anonymous

    $3.69 here. 90 miles north of here its $2.95. Can you say "price gouging"?

  7. Steve Weiser

    Gas is still about $4.00 in NYC…What *^#king crash? We have been subsidizing big oil, through tax exemption, for years! Oil has reaped billions in profits, and we have been raped by shareholder greed. Wait until their tax exemptions end with the fiscal cliff looming…..$6.00 a gallon, quite possible!

  8. James R Puehl Sr

    Are you saying the oil companies are the ones paying for the wars?

  9. Kerrie Douglas Shaffer

    I'm no expert, but I don't ever believe a word they say say. It might have something to do with the rise of the fracking and natural gas availability here in the U.S. Price goes down and it makes the competition less likely to succeed. Not as cost beneficial to drill domestically? I don't know – anyone who's knowledgeable comment? And please no Obama ridiculers or other nutcases.

  10. Ken LaMaster

    During the last presidential debate Obama criticized Mitt Romney quoting the price increase of gas since the president took office. Obama stated, "if the price of gas is that low again it probably means the economy is headed in the wrong direction." or words close to that. So now that gas prices are dropping Mr. President I guess the economy is about to go under as well.

  11. Mike Dar

    Futures domination in oil by several hedge funds of several Primary Dealers to the Federal Reserve corporation is what raised oil after dropping below 50$ BBL and the question should be asked is why the Primaries are not buying the futures contracts at the pace they were.

  12. Mariafe Sorensen

    .46 cents ON AVERAGE is not a crash no matter how you put it! $4.00 a gallon is Highway robbery and destroying America's economy! lets put that as a headline in the paper.

  13. Norm Haidet

    Come to NE Ohio where gas can go up anywhere from 25 to 35 cents a gallon on just a BIG OIL and right winged whim. Contact any person in the Senate or House and listen th their blatant, transparent lies. Wouldn't it be nice to have ONE single person in politics standing up to the BIG OIL Lies?