Drop in Gasoline Prices due to Cheaper Oil Prices

The average cost for each gallon of regular gas in the United States decreased 11 cents over the last two weeks, mostly due to a cheaper crude oil price per barrel. Overall, the current gasoline price reflects a drop of almost 26 cents in 2 months, according to the recently released Lundberg Survey, the widely known gasoline price tracking poll in the country.

The recent average of retail gas prices in the U.S. is $3.54 a gallon and was lower by 37 cents versus last year, according to the survey of almost 2,500 stations in selected cities in the country.

Last year, the average price of gasoline was almost $3.91 a gallon, a rate that is lower than the peak rate it attained of almost $3.97 during the last period of the survey, said Trilby Lundberg, the survey’s editor.

The prices of crude oil in the United States over the last couple of weeks dropped by $4.69 per barrel. That amount, when divided by 42, the total gallons per barrel, is equivalent to 11.1 cents. That shows that the fall in the gasoline price today is directly correlated with the drop in current crude oil prices, said Lundberg.

Of the cities comprising the most recent poll, the cheapest gasoline price is in Tulsa, Oklahoma at $3.21 per gallon, while Chicago motorists pay the highest price for gas at $3.97 per gallon.

Chicago was also the city with the most expensive price of gasoline during the last survey, with each gallon averaging at $4.05.

By: Chris Termeer