Gas prices' big fall: sharpest drop in almost 4 years
| New York
The average U.S. price for a gallon of regular gasoline took its biggest drop since 2008 in the past two weeks, due to lower crude oil听prices, a big price drop in pump听prices听颈苍听California听补苍诲 Hurricane Sandy, according to a widely followed survey released on Sunday.
骋补蝉辞濒颈苍别听prices听averaged $3.5454 per gallon on Nov. 2, down 20.75 cents from Oct. 19 when drivers were paying $3.7529 at the pump, Lundberg said.
The decline was the biggest two-week price drop since the survey recorded a 21.9 cents price decline Dec. 5, 2008 due to a crash in petroleum demand during the global recession.
Even though many people had to line up for gasoline for hours after Sandy devastated much of the Northeast coast, the storm played a part in the price decline as many would-be consumers were not able to travel as a result, according Trilby Lundberg, editor of the听Lundberg Survey.
Lundberg also cited the seasonal dip in demand that typically comes after August.
While demand appeared to be very high for gasoline in New York 补苍诲听New Jersey听after the storm, Lundberg said that purchases were down because many people could not get to fuel.
However, supply shortages were not causing an increase in the average price of gasoline, according Lundberg.
"There is a fear among retailers that they will be accused and prosecuted for price gouging if they raise听pricesenough to prevent running out," she said, adding that the problems would be unlikely to end soon.
"It's going to be a long and hard recovery for infrastructure and fuel supply but also for fuel demand," Lundberg said.
Another reason for the total U.S. price decline in the latest survey is听California, the biggest state consumer, where pump听prices听fell 49 cents in past two weeks after an extreme price increase a month ago because of refinery problems.
The Nov. 2 survey shows that听gas听prices听have fallen a total of 29.21 cents in the last month, Lundberg said.
The highest听prices听for regular gasoline recorded in the Nov. 2 survey were in听San Francisco听at $4.05 a gallon, while drivers in Memphis,听Tennessee听were paying the least at $3.11 per gallon. (Reporting By Sinead Carew; Editing by Marguerita Choy)
