Drivers getting a little relief at the pump

Posted Sep 26th 2008 2:39PM by Michael Fowlkes
Filed under: Major Movement, International Markets, Products and Services, Consumer Experience, Middle East, Oil

One of the main things that was on most of our minds this summer was the record high gasoline prices that gripped the nation. While prices are still very high on a historic basis, the past month has seen a nice drop in prices, and given drivers a bit of relief when they pull into their local gas stations.

According to AAA, gasoline prices fell again today, currently down to $3.683 a gallon for regular unleaded, still pretty high, but much lower than what we were seeing in the middle of summer.

Prices set a high on July 17, with the national average for gasoline going for $4.114 a gallon. While we are all relieved to see prices off their highs, they are still well above where they were at this time last year, when the national average was down at $2.81 a gallon, 31% lower than the current price.

The main reason we are seeing lower prices is that gas has been following oil's price decline, which has also fallen sharply from its mid summer highs. Monday of this week, we saw oil make the largest one day jump in history, but that turned quickly, and prices have resumed their fall. Oil is down 38% from its highs it set earlier this summer.

So while there is still room to the downside, we can at least be happy that for now at least we are no longer talking about $4 gasoline. In fact, there are only two states in the country that still has prices above the $4 barrier, Hawaii and Alaska.

What sort of prices are you seeing in your area? Let us hear what the current prices are in your part of the world!

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.

Tags: gas, gasoline prices, GasolinePrices, inthenews, oil, oil prices, OilPrices