Gas prices are still high, that is without question; however the high price is coming down. Interestingly, over the same two weeks in which gas prices have fallen the price for crude oil has risen by $3.55 a barrel. So oil prices are up and gas prices are down, what is going on here?
According to a newly released Lundberg Survey, a survey that looks at the price of gas at thousands of gas stations in all corners of the U.S., the answer is that American motorists are using less gas due to the hard economic American situation.
Americans are driving less, turning to public transportation, or simply not filling up their tanks as often. This means that even though the price of oil is up, the high cost cannot be passed on to American consumers by gas distributors because the American consumer is already not buying their product.
While the consumer is winning out by getting cheaper gas at the pump, the refineries and distributors are taking a monetary beating as oil prices increase and the distributors are not able to make up the difference by increasing the price of a gallon of fuel at the pump. This means that these low gas prices will not last for long.
The Lundberg Survey found that the lowest average cost of gas in the US was in Albuquerque New Mexico with a price of $2.84 a gallon. The highest average was found in San Francisco with a price of $3.67.
The rollercoaster ride that is the ever changing price of a gallon of gas in America is incredibly frustrating to consumers and distributors alike; and serves as a great example of how the current economic crisis in the U.S. is hurting everyone along the American supply and demand chain.
Andrew Meggison was born in the state of Maine and educated in Massachusetts. Andrew earned a Bachelor’s Degree in Government and International Relations from Clark University and a Master’s Degree in Political Science from Northeastern University. Being an Eagle Scout, Andrew has a passion for all things environmental. In his free time Andrew enjoys writing, exploring the great outdoors, a good film, and a creative cocktail. You can follow Andrew on Twitter @AndrewMeggison