Chicago Current Gasoline Prices Consistently Falling

The price of gasoline in Chicago has been falling and may keep on dropping until the Thanksgiving holiday, as long as there will be no significant global unrest or disruption in service.

The current gasoline price of regular unleaded is $3.92, a rate that is 36 cents and 12.3 cents lower than last month and last week, respectively, said the AAA.

In the city, the average gasoline price today for regular unleaded is $4.14. That is lower by 33 cents compared to last month and 11 cents below last week.

One expert attributes the fall in current gasoline prices to the refineries’ production of winter blend gas, a more profitable, easier to manufacture and readily available type of gasoline compared to the restricted summer blend gas.

Market analyst Phil Flynn of Chicago’s Price Futures Group said that refineries are making a significant quantity of the winter blend gas. However, that may change if unrest continues in Turkey, Iran and Syria. Another factor that may push Chicago gasoline prices back to their high levels is the upcoming fiscal policies of Congress that may signal reductions in expenditures and increases in taxes, consequently putting back the country’s economy back into recession.

The rise in gasoline prices in the past month raised Chicago’s consumer prices by 0.3 percent from their August rates, said the Labor Department. Locally, year over year prices grew 1.6 percent.

Without the inclusion of volatile energy and food prices, inflation was low, with only a 0.2 percent and 1.8 percent rise in prices compared to their rates in August and last year, respectively.

Prices of food fell 0.2 percent from August. Costs for groceries also dropped 0.4 percent, specifically spices, condiments, seasonings, ice cream, sauces and related items, as well as chewing gum and candy. Meanwhile, the cost of dining out grew 0.2 percent. Year-over-year costs of food are up 1 percent.

By: Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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