Gas prices drop $1 in five weeks
GLENWOOD SPRINGS, Colorado – If one good thing can be attributed to the current economic crisis wending its way around the globe it’s the drastically decreasing gasoline prices.At least the floundering economy is partly responsible.
The New York Times reported on Saturday that crude oil prices have plummeted from a peak of $145.29 per barrel on July 3 to $64.15 on Friday, a 56 percent decline in 16 weeks.For the first time in 2008, the national average price per gallon of regular self-serve unleaded is close to what it was at the same time in 2007. According to the American Automobile Association’s fuel price report the national average for a gallon of regular self-serve unleaded was $2.86 on Oct. 22, only 4 cents per gallon higher than the same week for 2007.The same report listed Colorado’s average price per gallon as $2.90 on Oct. 22, only 6 cents higher than the previous year. The AAA report focuses on nine cities throughout Colorado, including Glenwood Springs, with three or more gas stations to determine an average price per gallon.The national average has gone down $1.25 since it peaked at $4.11 on July 9, but prices have plummeted $1 since Sept. 17 alone, coinciding with the economic meltdown.But according to AAA Colorado spokeswoman Wave Dreher, it’s more than just the economic downturn that has affected gasoline prices, including reduced worldwide demand and declining crude oil prices. “It’s a number of things that are affecting the drop,” Dreher said. “As to why the dramatic drop? We can’t say just one reason.”
But this could be the largest decline the nation has ever seen.”From what I’ve been told, by the people who crunch the numbers, this is one of the most – if not the most – dramatic drops in gas prices that we’ve seen,” Dreher said. “To see (prices) down 60 cents or more in a month, that is a pretty dramatic drop.”In retrospect, gas prices have reached all-time highs in the past year, making $3 per gallon gas prices seem low.Glenwood Springs recorded an average price per gallon of $3.08 Monday, according to Dreher, a 16 cent decrease in five days. Glenwood had the highest prices in the state on this report for much of the summer, but now is lower than Vail, which was at $3.24 on Oct. 22.Gas prices in New Castle were reported as low as $2.84 Monday, while upvalley remained consistently higher than Glenwood. According to Mapquest.com, Aspen gas prices were still around $4.27 per gallon of regular unleaded.But this may not be the end of the downward cycle.
According to Dreher, AAA projects that gas prices will continue to fall between Halloween and the end of the year.”People don’t have to rush out and fill up their tanks today,” Dreher said. “Gas prices are going to stay down, but we don’t think the drop is going to be as dramatic as we’ve seen recently.”Dreher added that there is no guarantee that prices won’t go up, either, but AAA is projecting the national average could drop as much as $.61 cents more by Christmas.Contact John Gardner: email@example.comPost Independent, Glenwood Springs, Colorado CO
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