Gas Prices Fall Following Drop in Oil Prices

As a result of lower crude-oil prices, gasoline prices have started to retreat. That could be good news for consumers who are still sweating at the pump.

The average price of a gallon of regular unleaded, nationwide, has fallen to $3.62 from a week-ago price of $3.703, according to the AAA Daily Fuel Gauge Report. That's a drop of 2.3%, which may not seem like much. But if the rate of decline continues for the balance of August, regular gas prices could drop below $3.50 per gallon.

It will be surprising if prices do not fall sharply after Labor Day, the traditional end of the summer holiday season. And that is the time consumers should focus on, now barely a month away.

Oil Prices to Remain Low

Aside from the coming lower demand, gas prices should be dropping in the coming months because of the recent drops in crude oil. Gas prices usually lag oil prices as crude oil makes it through the refinery and transportation system.

The price of West Texas Intermediate crude oil fell to $80 last week, down from $100 in July, after lurking below $90 all month. There are a number of reasons to believe that oil prices will stay relatively low, at least by the standards of the last 12 months. The economies of the U.S., Japan, the U.K. and many other European nations have either slowed or have been thrown into reverse.

Economists have started to say that the drop in oil, even if it's caused by a slowing economy, could alter consumer behavior for the better -- at least from the standpoint of the economy. Households with budgets severely pressured by the cost of driving their cars will get some relief. That, in turn, could boost consumer spending, Unless, of course, the trouble in the rest of the economy increases consumer frugality.

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John

I don't believe that you can see the the oil company , wall street and probably congress are keeping price up so they won't lose any money , screwing the American people left and right, they think we are stupid or something lying to us and saying it because of this or that.!! Also they say they want us to use other forms of power but yet electric car still use gas and won't run with out it and the true electric cars cost more then a the middle class people can afford. Like i said they thing we stupid..

August 31 2011 at 12:32 PM Report abuse rate up rate down Reply
kastmaster2105

Damn sure hasn't dropped here either, 77563, and where in the hell is Obama's super committee, the gouger team, that is to go find these so-called gougers and deal w/ them? Send them too 77563 area code for sure. These damn rag heads and white folks are gouging us (all) to hell. I agree, someone will wait till a near Hurricane approaches and say rigs are shutting down, no oil flow, gas is in great demand and stations are running out. U ever see a station run out in the last few yrs? Unless the truck didn't show up on time that is! Hell no, and Big O wants to eye ball the reserves. Hell I heard that long ago. Its like NATO, No action, talk Only! Friggin crooks. HELL to be POOR

August 15 2011 at 5:12 PM Report abuse +1 rate up rate down Reply
yvcarudnj

When the price of gasoline gets back to $2.57 from last year that's when I will respect the oil compamies, but that will never happen because the speculators are only looking for the fast buck and nothing else. Gas price for regualr (cash) here in middle NJ is at $3.35 (BP Gas stations) BUT that will change as the price of oil goes back up. Gee, I wish I could get a 23% raise (from $2.57 to $3.35) .......

August 15 2011 at 3:09 PM Report abuse rate up rate down Reply
2 replies to yvcarudnj's comment
warrenbent

maybe if you could figure out that future speculators have no impact on oil prices someone would pay you $3.35?

August 15 2011 at 3:59 PM Report abuse rate up rate down Reply
Tom

still too high

August 15 2011 at 4:10 PM Report abuse rate up rate down Reply
badge75353

Gas has not dropped a penny here in the West and not likely to any time soon as traders are attempting to drive up oil prices again. They want $100 as a base to launch from there if there is a hurricane or any excuse.

August 15 2011 at 10:28 AM Report abuse rate up rate down Reply
jhrooney

Ever notice how gas prices drop SLOWLY, but go up immediately!!! Sounds like price fixing to me, but I'm not a politican either.

August 14 2011 at 11:09 PM Report abuse +3 rate up rate down Reply
savemycountry911

They finally figured out why the Japanese don't loot and riot. They don't have any Afro. Americans, Hispanics, Muslims or Democrats.

August 14 2011 at 9:21 PM Report abuse +1 rate up rate down Reply
Coke Kid

its a TEMP fall in oil because we all know it can sky rocket back in one day if needed and they can do the same at the pump, the oil dip of 15 bucks is good but its for the wrong reasons guys we know this and we need Obama to let there be drilling here and take the moritorium off drilling but he said when he got elected if you were paying attention that he wants high oil to bring up solar and wind but what about us here dealing with high gas prices? he dont care or he would have lifted the ban already and made more drilling.. People if you let Obama continue spending and borrowing from China and causing inflation and contibute to high gas prices then kiss America good by as we knew it before him.. its very simple VOTE HIM OUT AND VOTE IT SOMEONE WHO KNOWS BUSSINESS..

August 14 2011 at 8:59 PM Report abuse +3 rate up rate down Reply
mrspelosi

I see Bushy was up to his usual bad behavior and posting his nonsense. It's a real shame that he has no respect for
President Obama. President Obama called for civility and to tone things down. Why can't we liberals control our bad bahavior. Such a shame.

August 14 2011 at 7:35 PM Report abuse +2 rate up rate down Reply
1 reply to mrspelosi's comment
nomorebarry7

He's over on the GM recall board too,using his other screen names.

August 14 2011 at 7:37 PM Report abuse rate up rate down Reply
nomorebarry7

Barry and this administration are out of gas until it comes to campaigning or vacationing. No problem he'll just raise taxes to make up for it China will be happy.

August 14 2011 at 6:28 PM Report abuse +1 rate up rate down Reply
switzarch

In Talbot County, MD, 93 octane is $ 3.71 a gallon.

August 14 2011 at 5:59 PM Report abuse rate up rate down Reply