By Jonathan Spicer
The average price of a gallon of gasoline fell by 9 cents in the past two weeks, a sharp drop due to wholesale price cuts at refiners, according to the Lundberg survey released Sunday.
Prices fell to an average of $3.58 a gallon for regular grade gasoline, according to the survey conducted July 25. It was the first big drop in the year, and comes after twelve months of relative stability at the pumps, survey publisher Trilby Lundberg said.
"There is an abundance of gasoline, inventories are high, and refiners are cutting to chase those summer sales," Lundberg said. "We can expect gas prices to keep migrating down, though maybe not to this extent."
The average price for gasoline is now about 10 cents lower than a year ago. The recent drop came despite a rise in the price of global crude oil.
San Francisco had the highest price within the survey area at $4.03 a gallon for regular while the lowest price was in Tulsa where regular grade cost $3.23 a gallon.
Good News, Summer Travelers: Gas Prices Are Way Down
More from Reuters
•Second-Quarter GDP Growth Revised Sharply Higher to 3.7%
•Market Wrap: Wall Street Chalks Up Biggest Gain in 4 Years
•Market Wrap: Stock Rally Goes Up in Smoke, Indexes End Lower