Gas Prices: Two Week Plummet

With daily and terrifying economic headlines, who’s watching gasoline prices? While mulling over bank closures, consumers do glance at gas prices and have vaguely noticed they went down – but for how long and how much?gasprice1.jpg

The Auto Club’s latest survey says that the gas price “freefall continues as prices drop for the twelfth straight week thanks in part to an uncertain economy.” Locally, a gallon of regular unleaded sells in the Bishop area for as low as $3.49 and as high as $3.87. In Mammoth Lakes, the same gallon sells for $3.95 or $3.96.

The statewide average price is still lower than all of our prices. It’s $3.46 per gallon of regular. That’s down 39 cents since last month. So, why the drop? The Auto Club first points to a continuing cut back on use of gas as California drivers reduce their travel.

The national average gas price has dropped to $3.16 per gallon of regular unleaded. That’s down 50 cents in the last two weeks. So, how low will the prices go?

Don’t place any bets. OPEC – The Organization of Petroleum Exporting Countries – is reportedly concerned about “the instability in the oil market and may decide to cut production” at its special meeting next month in Vienna. A decision to cut production would halt the gas price decline.

The price of oil has started to go back up after it hit a 13-month low on Friday.

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