Gasoline consumers are paying about 17 cents more than a year ago; this hit is much smaller than for on-road diesel consumers, who are paying about 42 [image-nocss] cents above a year ago. While not an incentive to consume more, these price premiums are less hurtful, given economic conditions, than they used to be.
For 2010 so far, the twice-monthly surveys show the low price at $2.67 and the high at $2.92. This is a comparatively narrow range, and says that there has been no radical change in supply or demand. Demand is paltry, and supply is sloppy. Gasoline echoes crude oil's comparatively narrow range, thanks to lackluster demand and oversupply.
Generally, 2010 has been a retail gasoline price range of about 25 cents; crude has seen a comparable range, in cents-per-gallon equivalent.
The cause of the latest two-week gasoline price decline is slightly lower oil prices since June 25. How the price trend unfolds from here rests mostly with what oil prices do, and secondarily with how gasoline supply versus demand balance out. If oil continues to float between $70 to $80 per barrel most of the time, and if the flush gasoline supply and meager gasoline demand continue, then retail price changes up or down will be small.
For oil or gasoline demand to burgeon, the economic and unemployment scenes would have to bloom, and they won't any time soon. This will suppress gasoline price, unless crude oil prices skyrocket due to a real or perceived quick-time threat to production.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.