Just in time for the holidays: Lower gas prices
Prices at the pump nationally have fallen substantially in recent weeks, and are nearly back to where they ended 2011. Drivers are saving about $5.70 since mid-September on a 10-gallon fill-up.
In case you haven't noticed, you're paying less to fill up your car at the gas pump -- nearly 15% less since September and more than 16% less than what you might have paid when prices peaked in early April.
In fact, the national average retail price of gasoline is very nearly back to the price at the end of 2011, according to AAA's Daily Fuel Gauge Report.
The retail price was $3.301 a gallon nationally Thursday, down from $3.315 on Wednesday.
The price was just above -- 0.76% above to be exact -- $3.276 a gallon, the average price on Dec. 31, 2011.
The bad news in the report is that gasoline nationally has averaged $3.62 over the 348 days so far in 2012; that's the highest ever. But the average price is down about 64 cents from the high price of the year, $3.936, set on April 5 and April 6. It's down 57 cents since Sept. 14. What gives? A number of factors, says Fred Rozell, director of retailing for the Oil Price Information Service, the company that collects the data for AAA:
- Seasonality. Gasoline prices rise starting in the early winter as refiners start to build up supplies for the summer. And they typically fall starting in late summer or early fall into the winter bottom.
- Fuel efficient cars. Slowly but surely, the American auto fleet is getting younger and is more efficient. That's cut into demand at the gas pump.
- Hurricane Sandy. That's crimped gasoline demand in the middle Atlantic states as residents clean up and rebuild from the storm that crippled New Jersey, New York City and Long Island.
- A soft economy. Consumers are wary about doing a lot of traveling because they worry about a weakening business environment.
The gasoline price runup that normally starts in early winter actually began in the fall of 2011 and continued into February as the talk about Israel taking preemptive action against Iran's nuclear installations escalated.
Gasoline demand for 2012 may be the lowest since 2001, Rozell says. The peak was 2007 when the economy appeared to be soaring.
About 6% of gas stations are selling regular unleaded gas at under $3 a gallon, OPIS data show. Missouri has the cheapest gasoline, followed by Oklahoma and Texas. Hawaii is the only state where gasoline prices are still above $4 a gallon.
Light, sweet crude oil (-CL) in New York peaked at $109.77 on Feb. 24. It was at about $86 a barrel Thursday.
Brent crude, the benchmark North Sea crude, peaked at $126.20 a barrel on March 1. It's at about $108 a barrel now. Brent reflects conditions in global oil markets better than light sweet crude.
For 2013, Rozell expects a similar pattern but doesn't see retail prices reaching their 2012 peaks.
More from Money Now
I'll admit this is a first! Low gas prices at the Holidays!!! I just don't believe it there must be a catch somewhere!!!
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market ended the Thursday session on a mixed note ahead of Friday's nonfarm payrolls report for February (Briefing.com consensus 163K). The Dow Jones Industrial Average (+0.4%) and S&P 500 (+0.2%) posted modest gains while the Nasdaq Composite (-0.1%) lagged throughout the session.
Equities began the trading day on an upbeat note following comments from the Bank of England and the European Central Bank, both of which reaffirmed their commitment to ... More
More Market News
Consumers are very status conscious in Asia, Africa and other emerging-market areas. This is especially true in China.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'