Continuous Drop in Current Gasoline Prices caused by Crude Oil Price Decline

Over the last three weeks, the average gasoline price per gallon in the United States declined by 15.9 cents to $3.624. According to the Lundberg survey, the decrease is mainly caused by the fall of crude oil price due to concerns over the economy of Europe and a stronger dollar.

Based on the survey conducted at about 2,500 continental U.S. gasoline stations, the average gasoline price as of June 8 was lower, by at least 11.62 cents, compared to last year’s rate of $3.40 per gallon.

That was the lowest gasoline price since the survey conducted on February 10, which showed a $3.51 per gallon average.

The survey was the fourth consecutive poll that showed a reduction in gas prices. The cost of gas started to increase on the 6th of April at $3.967. Since then, it has already declined by 34.28 cents says Trilby Lundberg, the editor of the survey.

Diesel’s average price per gallon has also posted a similar decline. Over the last nine weeks, it has already dropped by 30.61 cents, including 17.64 cents in only the last three weeks, to end at $3.9089.

The price of diesel and gasoline are both lower compared to the previous year. Lundberg said that fuel consumers in the United States have gained an important benefit with the drop in the cost of both fuels, which primarily declined due to crude oil prices.

The lowest average per gallon gasoline price at self serve stations was $3.18 at Jackson, Mississippi while the highest was at Seattle at $4.22, which is partly due to the fire at Washington State’s Cherry Point refinery.

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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