CAMARILLO, Calif. -- The U.S. average regular grade price of gasoline fell 9.24 cents in the past two weeks, to $3.9074 per gallon. The price on May 6, $3.9998 (in other words, $4 per gallon), was a mere 11.24 cents under the all-time highest price for gasoline back in early July 2008, according to the most recentLundberg Survey of approximately 2,500 U.S. gas stations.
Crude to the rescue, crashing during the first week of May, and still working its way through (from refiners to retailers, and from retailers [image-nocss] to motorists). There may well by another dime or more drop in the retail price in coming days.
That's if crude oil prices allow. Even if world oil supply suffers no problem, another caving of the U.S. dollar would support oil prices and limit gasoline price declines.
Currently, refiner and retailer margins on gasoline are fat indeed. Competitive conditions will force them to give much of their gains. Demand is falling thanks to months of skyrocketing prices and still-deep underemployment. Flooding in the Southeast is affecting demand as well.
Unfortunately, the currently wide refiner and retailer gasoline margins are occurring just when government conspiracy theorists and their fellow travelers are setting their telescopes on potential "price gougers."
Camarillo, Calif.-based Lundberg Survey Inc. is an independent market research company specializing in the U.S. petroleum marketing and related industries.
Click herefor previous Lundberg Survey reports in CSP Daily News.
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