Gasoline prices down 10% from April peak
The national average has fallen from nearly $4 to $3.54 a gallon recently, and it's likely to keep dropping as global economies slow.
By Charley Blaine Jun 11, 2012 2:02PM
On April 5 and 6, the national average price of regular unleaded gasoline stood at $3.936 a gallon, according to AAA's Daily Fuel Gauge Report. That was up 20% for the year and nearly 31% higher than where it had been a year before.
The next day, the price dropped to $3.932 a gallon A day later, it was down to $3.929. And it went down and down and down. Sunday, the daily survey put the price at $3.542 a gallon. That was down 39.4 cents -- 10% from that April high.
Today, the price is at $3.54, down 10.06%.
Granted, the price is still up 8.1% for the year, and prices vary wildly: They ranged today from $4.47 a gallon in Hawaii, $4.398 in Alaska and $4.167 in Washington state to $3.211 in Tennessee, $3.207 in Alabama and $3.125 a gallon in South Carolina.
But prices are lower and likely to continue to fall. Prices typically peak around Memorial Day and drop in the late summer and fall. They also follow crude oil prices. Crude oil in New York peaked at $109.77 on Feb. 24 and settled Monday at $82.70 a barrel. That's down 24.6% from the April high. Brent crude, which helps price gasoline along the East Coast, peaked at $126.20 a barrel on March 1. It's down more than 22% since then.
So, why did gasoline surge so much early this year? Oil traders were betting on a war between Israel and Iran. The assumption was that Iran would try to block oil tankers from passing through the Strait of Hormuz.
The war didn't happen and may not. That meant the traders who had been speculating on $5-a-gallon gasoline and crude oil pushing, say, $200 a barrel, had to sell quickly to lock in their profits -- or minimize losses if they bought in late.
Economies in Europe and China have cooled off, and that's affected oil markets worldwide. The next question is why prices haven't come down as quickly as oil.
Two reasons: It takes time to work off high-priced inventories. And oil companies and service stations don't want to cut prices if they don't have to. So, prices come down more slowly.
The next day, the price dropped to $3.932 a gallon A day later, it was down to $3.929. And it went down and down and down. Sunday, the daily survey put the price at $3.542 a gallon. That was down 39.4 cents -- 10% from that April high.
Today, the price is at $3.54, down 10.06%.
Granted, the price is still up 8.1% for the year, and prices vary wildly: They ranged today from $4.47 a gallon in Hawaii, $4.398 in Alaska and $4.167 in Washington state to $3.211 in Tennessee, $3.207 in Alabama and $3.125 a gallon in South Carolina.
But prices are lower and likely to continue to fall. Prices typically peak around Memorial Day and drop in the late summer and fall. They also follow crude oil prices. Crude oil in New York peaked at $109.77 on Feb. 24 and settled Monday at $82.70 a barrel. That's down 24.6% from the April high. Brent crude, which helps price gasoline along the East Coast, peaked at $126.20 a barrel on March 1. It's down more than 22% since then.
So, why did gasoline surge so much early this year? Oil traders were betting on a war between Israel and Iran. The assumption was that Iran would try to block oil tankers from passing through the Strait of Hormuz.
The war didn't happen and may not. That meant the traders who had been speculating on $5-a-gallon gasoline and crude oil pushing, say, $200 a barrel, had to sell quickly to lock in their profits -- or minimize losses if they bought in late.
Economies in Europe and China have cooled off, and that's affected oil markets worldwide. The next question is why prices haven't come down as quickly as oil.
Two reasons: It takes time to work off high-priced inventories. And oil companies and service stations don't want to cut prices if they don't have to. So, prices come down more slowly.
| Gasoline prices by state across the country | ||||||||||||
| State | Regular | Mid | Premium | Diesel | ||||||||
| Hawaii | $4.477 | $4.563 | $4.657 | $4.848 | ||||||||
| Alaska | $4.398 | $4.466 | $4.577 | $4.514 | ||||||||
| Washington | $4.161 | $4.290 | $4.389 | $4.175 | ||||||||
| California | $4.117 | $4.216 | $4.313 | $4.129 | ||||||||
| Oregon | $4.116 | $4.238 | $4.346 | $4.093 | ||||||||
| Nevada | $3.825 | $3.937 | $4.039 | $3.845 | ||||||||
| Idaho | $3.786 | $3.889 | $3.995 | $3.992 | ||||||||
| Connecticut | $3.777 | $3.952 | $4.081 | $4.110 | ||||||||
| Illinois | $3.775 | $3.906 | $4.067 | $3.865 | ||||||||
| New York | $3.771 | $3.931 | $4.053 | $4.166 | ||||||||
| Montana | $3.758 | $3.828 | $3.936 | $4.004 | ||||||||
| Michigan | $3.730 | $3.824 | $3.932 | $3.890 | ||||||||
| Utah | $3.727 | $3.843 | $3.941 | $3.873 | ||||||||
| Vermont | $3.702 | $3.831 | $3.948 | $4.011 | ||||||||
| Colorado | $3.699 | $3.799 | $3.898 | $3.784 | ||||||||
| Rhode Island | $3.640 | $3.819 | $3.960 | $3.956 | ||||||||
| Arizona | $3.638 | $3.750 | $3.870 | $3.712 | ||||||||
| Wisconsin | $3.621 | $3.734 | $3.883 | $3.795 | ||||||||
| District of Columbia | $3.607 | $3.820 | $3.922 | $3.932 | ||||||||
| West Virginia | $3.600 | $3.702 | $3.815 | $3.925 | ||||||||
| Indiana | $3.599 | $3.705 | $3.812 | $3.830 | ||||||||
| Wyoming | $3.584 | $3.670 | $3.784 | $3.889 | ||||||||
| Ohio | $3.582 | $3.685 | $3.790 | $3.855 | ||||||||
| New Mexico | $3.560 | $3.676 | $3.782 | $3.790 | ||||||||
| Maine | $3.558 | $3.721 | $3.838 | $3.929 | ||||||||
| Massachusetts | $3.552 | $3.718 | $3.838 | $3.901 | ||||||||
| North Dakota | $3.546 | $3.552 | $3.729 | $3.832 | ||||||||
| New Hampshire | $3.527 | $3.676 | $3.790 | $3.843 | ||||||||
| South Dakota | $3.526 | $3.457 | $3.728 | $3.767 | ||||||||
| Minnesota | $3.482 | $3.545 | $3.704 | $3.780 | ||||||||
| Pennsylvania | $3.478 | $3.603 | $3.762 | $3.887 | ||||||||
| Nebraska | $3.468 | $3.377 | $3.642 | $3.671 | ||||||||
| Maryland | $3.443 | $3.614 | $3.749 | $3.774 | ||||||||
| Kentucky | $3.432 | $3.552 | $3.665 | $3.785 | ||||||||
| New Jersey | $3.423 | $3.619 | $3.741 | $3.739 | ||||||||
| Delaware | $3.413 | $3.598 | $3.739 | $3.749 | ||||||||
| North Carolina | $3.379 | $3.526 | $3.672 | $3.845 | ||||||||
| Florida | $3.365 | $3.556 | $3.683 | $3.784 | ||||||||
| Iowa | $3.365 | $3.283 | $3.518 | $3.665 | ||||||||
| Kansas | $3.355 | $3.442 | $3.576 | $3.653 | ||||||||
| Texas | $3.349 | $3.504 | $3.641 | $3.728 | ||||||||
| Virginia | $3.318 | $3.508 | $3.645 | $3.705 | ||||||||
| Missouri | $3.302 | $3.435 | $3.589 | $3.512 | ||||||||
| Georgia | $3.301 | $3.478 | $3.632 | $3.748 | ||||||||
| Oklahoma | $3.298 | $3.385 | $3.509 | $3.583 | ||||||||
| Louisiana | $3.284 | $3.444 | $3.573 | $3.680 | ||||||||
| Arkansas | $3.236 | $3.356 | $3.512 | $3.715 | ||||||||
| Mississippi | $3.215 | $3.349 | $3.496 | $3.656 | ||||||||
| Tennessee | $3.211 | $3.354 | $3.493 | $3.690 | ||||||||
| Alabama | $3.207 | $3.370 | $3.514 | $3.715 | ||||||||
| South Carolina | $3.125 | $3.268 | $3.418 | $3.633 | ||||||||
| Today | April 6 peak | Chg. | Pct. Chg. | |||||||||
| U.S. avg. retail unleaded | $3.540 | 3.936 | 39.6 cents | 10.06% | ||||||||
| Source: AAA Daily Fuel Gauge report | ||||||||||||