Money Matters - Simplified

US gas prices down 5 cents in past two weeks

The latest survey found that among the cities surveyed prices in Tulsa, Oklahoma, remained lowest at $3.52 per gallon while Chicago had the highest gas prices at $4.26 for a regular gallon.

According to the nationwide Lundberg Survey of fuel prices released Sunday, regular unleaded gas in the United States touched $3.9127 a gallon, down by 5.44 cents in the past two weeks.

The average retail price of a gallon of gasoline witnessed a dip for the first time since mid-December.

However, the drivers are still paying 3.27 cents more than a year earlier, when the average was $3.88.

Mid-grade costs an average of $4.06 a gallon while the premium is priced at $4.18.

“Gasoline prices have slipped, and if crude-oil prices remain stable, then we may see another 5 cent to 10 cent decline at the pump,” said energy market analyst, Trilby Lundberg, the editor of the survey.

Survey findings
The Camarillo, California based company compiles the gasoline price report every two weeks on the basis of information gathered from around 2,500 stations across the nation.

The latest survey found that among the cities surveyed prices in Tulsa, Oklahoma, remained lowest at $3.52 per gallon while Chicago had the highest gas prices at $4.26 for a regular gallon.

In other cities surveyed, the average gas prices in Atlanta were $3.79, Boston: $3.95, Denver: $3.87, Houston: $3.85, Memphis, Tennessee: $3.72, Portland, Oregon: $4.02 and San Francisco: $4.21.

Average diesel prices fell 4.15 cents to $4.1735 compared with two weeks earlier.

The diverse prices of gasoline are due to the variation in tax levels in different states.

Some plausible reasons
Experts attribute Iran’s decision to reconsider its nuclear program as the main reason behind the levelling of gasoline price.

Also, the changing US economy circumstances, a guarantee from Saudi Arabia that it can deal with any loss of oil from Iran as well as a pipeline reversal that will improve oil reserves in the global markets may have played a role in the decrease in gas prices.

However some analysts are skeptical that gasoline prices could rise at the start of the Memorial Day weekend which customarily launches the travel season, as people hit the open roads for a holiday. Also, refineries switch to a summer blend for gasoline which is more expensive.

Jana Tidwell, Public Affairs Specialist for American Automobile Association’s (AAA) Mid-Atlantic stated, “April has seen more days of gas price declines than any month this year, which has motorists and analysts alike wondering if a gas price break is under way.

“While several factors influencing crude oil prices remain in play, some analysts believe gas prices will continue to retreat and sometime in the next ten days or so we could be paying less at the pump than we were a year ago.”