This last week I watched prices in SC drop from an average of around $3.99 (7/23) to several places selling gas for as low as $3.49 (7/27). That's a pretty sharp drop over just a few days, catching up to the 20% price drop in oil over the past 2 weeks. The news I have heard implies that the lifting of offshore drilling and other moves to increase supply has resulted in the oil speculators to drive down oil prices. It's then a matter of the consumer avoiding those gas stations that continue to gouge.

This morning on my drive in to work I observed a range of prices at "name brand" gas stations from $3.83 to $3.49. As you can imagine the higher priced stations were vacant of customers. The gasbuddy temperature map, linked below, doesn't show this trend yet, but hopefully many of you out there are seeing better fuel prices.

http://www.gasbuddy.com/gb_gastemperaturemap.aspx

BTW, regardless of your political affiliation, it's much better to be a Green state than a Red state on that map.

 

The markets are emotional. The run-up to $145/brl. oil was in part panic driven. It was only natural for things to calm down a little bit. A $20.00 correction seems about right. But the fundamentals haven't changed at all.

I doubt we will see anything much below $3.75/gallon gas. Perhaps we might get a little bit below this in the Fall and over the winter, but you can bet the bank we'll see a ferocious return of very high gas prices next Spring.

But it's a very complicated market. Not very many people predicted that diesel would shoot past gasoline in price the way it did. But with the benefit of 20/20 hindsight it makes perfect sense what with diesel being the more popular and versatile fuel on a global basis.

I would bet on continued high levels of price volatility. And this will make dealing with the problem all the harder. People want a clear price direction to end the debate about what to do; conserve and seek out alternatives, or "business as usual". And it's too bad people are so stupid because the high level of price volatility is very likely in itself a signal that demand will continue to outstrip supply.

 

It's still well over $4 in Utah. Most places are $4.15 to $4.30. Costco is always the cheapest. I paid $4.04 there today. The last time I filled up I paid $3.99, and I hoped to hold out until it dropped back below $4, but no luck today.

 

A couple stations have dipped to $3.45. However, it seems that the gougers have formed a united front holding the price for the majority of stations above $3.60 in my area. Prices here are the most spread out that I have ever seen, ranging from $3.45 to $4.04.

 

still in the 3.80s here in NC. I'm not too far from the border though so alot of people have always gone to SC to fill up.

 

3.45 to 4.04 is only (roughly) a 15% difference - talking spread isn't really relivent.

 

i don't know but 59 cents is pretty relevant to me.

 

But that is per gallon. If you are putting in 20 gallons is it more relevant than if you are putting in 2 gallons - of course?

My point is, a 15% spread for gas isn't that much. When gas was ~$1/gallon was it not normal to find gas stations that charged 90 cents a gallon and other that charged 110 cents per gallon? There is no difference in that spread from the 59 cent spread.

 

My recollection is that, before the most recent run-up in gas prices, the spread between 87 and 92 octane at a given station was typically 20c/gal. In the latest run-up, the spread between grades opened up to 25 - 30c.

I glanced at one station on the way to work and was startled to notice their spread was 54c, leading me to wonder if the current falling prices are biased towards the low-test. I'll keep my eyes open to see if this was an exception or the norm now. Has anyone else noticed this?

We've been running the RXh on 92 oct, but if the spreads stay this wide I'll move 'checking FE and driveability on low- or mid-test' up my priority list.

BTW, Oregon now mandates E-10 in all grades. Implemented in most of the state now, with the rural counties required to comply by later in the year.

Benton 30jul08

 

Here is Vegas the spread from 87 to 91 octane is 20 or 22 cents (20 cents most places). Of course where I fill up is a 22 cent spread, but thats fine. It's only a 5% premium charge (at $4 vs $4.2 a gallon).