Gas Prices Down for First Time Since July

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Gas Prices Down for First Time Since July


JERSEY CITY, N.J. -- Motorists are starting to see some relief at the pump. And though the actual decrease is not remarkable, the four-tenths of a cent drop over the past two weeks the marks the first decrease at the pump since July.

As Reuters reported, the national average price of a gallon of regular gasoline was $3.8338 on Sept. 21, down from $3.8376 on Sept. 7, according to Trilby Lundberg, editor of the Lundberg Survey, which covers some 2,500 gas stations nationwide.

While the decline is small enough to be considered "no change," it ends a nine-week run of gas price increases dating to July 13, when the average gallon of gas cost $3.41, Lundberg said on Sunday.

The change in gas prices is a result in falling crude oil prices in part by signals that Saudi Arabia may be willing to supply more oil to the market to lower prices, Lundberg said. The news could mean a period of price stability assuming relative status quo in crude oil prices, the news outlet added.

"Margins on gasoline for refiners and retailers are not only positive but comparatively healthy, so there is no disadvantage at the moment for the industry to withhold a price cut," Lundberg said.

Several factors played roles in the decrease. For example, the United States and Europe are still struggling with economic woes and an economic slowdown in China has eased demand. The end of the high-consumption summer months also brought about lower demand, while the resolution of issues at some U.S. refineries increased supply, Lundberg added.

According to the survey, Chicago has the priciest gas at an average of $4.25 a gallon, while drivers in Jackson, Miss., pay the lowest average price of $3.52.