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