Why gas prices are still falling
Even after Superstorm Sandy, they're at their lowest levels since March.
But prices at the pump continue to drop nationwide. And the bottom line continues to be this: People in Superstorm Sandy's path are using significantly less gas. Either they aren't driving much or they simply can't find gas because so many filling stations are without power.
That sudden slowdown is helping gas prices fall across the country.
Friday, the national average for a gallon of gas dropped below $3.50 for the first time since March, CNBC reported. Gas has fallen by 8 cents in the last week and 28 cents in the last month. You can see the national average at AAA's fuel gauge report.
Another reason gas prices are falling is because oil prices are dropping as well. Oil has drifted lower in Canada, North Dakota and parts of Texas, CNBC reported, and the price of oil is seen as an indicator of future gasoline prices.
But not everyone is seeing cheaper gas. There were numerous reports of fuel gouging in New Jersey, despite the state's anti-gouging laws. In fact, some stations had raised prices by as much as 30% in one day, a spokesman for the state's consumer affairs department told NBC News. The law only allows a maximum 10% markup.
AAA estimated that 60% of New Jersey gas stations and 70% of those on Long Island has closed after Sandy's devastation, CBS News reported. For many stations, it was the lack of electricity that presented the biggest problem, not a lack of gasoline.
Only two of the region's refineries were shut down this week, the Associated Press reported. The Phillips 66 (PSX) plant in Linden, N.J. briefly lost power and was flooded in parts, and a Hess (HES) refinery in Port Reading, N.J. was also down. Another company, NuStar (NS), said some of its terminals were damaged by water, CNN reported. Shares of Phillips 66 were down 2.2% Friday, while Hess shares were up less than 1% and NuStar fell 1.2%.
More important is whether New York Harbor has enough power going to its giant oil storage tanks and pipelines so that it can accept fuel deliveries and distribute gas to the region.
The main roadblock to providing gasoline in the Northeast is power. Once gas stations and the fuel operations in New York Harbor see electricity return, then the Northeast can resume its normal fuel consumption.
But for now, the rest of the country can benefit from more supplies and a decline in the price of gas -- a decline that AAA estimates should continue through Thanksgiving.
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This article has it WRONG! The day after Sandy hit, here in Lexington, the price of gas at the lowest priced station went from $3.18 to $3.45/gallon! Falling? NOT!!!
Because its a few days before the election. Part of the four part plan. Why are expected number of jobs up and unemployment up... hmmm... as long as that number shows a big "7" instead of his new acceptable "8", because people don't know what a decimal is either.
Gas doubled, but down a quarter now.... so thats great.
Someone said that the President has no control over gasoline prices!
People who love him, do though! Same thing, and just before the Election! Who would have guessed....?
Our president and government do not set the prices. They just make sure that oil companies abide financial regulations and environmental laws. Besides that their hands are tied....yes, personal influence can make an impact on production and try to lobby in favor of lower costs, but it comes at a price, the passing of norms and legislation that allow oil companies and distributors tax incentives and writeoffs.
The President of the United States, no matter who it is, has NO control WHATSOEVER over the price of gasoline. Any of you who say or imply he does is a fool or a liar, or both.
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