Gas Prices Drop to Lowest Levels of 2006
October 24th, 2006 | by Brian Carr |It only took nine and a half months, but gas prices have finally reached their lowest levels for 2006.
According to information released by the federal Energy Information Administration, the average price for a gallon of regular unleaded gasoline now stands at $2.21, just edging out the previous low of $2.24 set the last week of January.
This past summer, oil reached its peak price on July 14 when it reached $78.40 per barrel, followed by the price of gasoline reaching its peak at $3.06 per gallon during the first week in August. The price of oil and gasoline soared this summer thanks to unsubstantiated fears regarding:
- what was supposed to be the most active and destructive hurricane season on record (it was actually one of the quietest)
- geopolitical tensions
- Iran’s nuclear program
- the belief that the world is now on the downside of oil production
However, after all of the fluff was determined to be just that, the price of both oil and gasoline has been in a bit of a free fall, with oil losing roughly 25% of its value in the last three months, while gasoline has dropped over 27% in the span of roughly two months.
Prices have even fallen so far that the current levels are $.40 lower than at the same time last year.
2 Responses to “Gas Prices Drop to Lowest Levels of 2006”
By Gangis on Oct 25, 2006 | Reply
Last week, for the first time in two years I was able to get gas for $1.99 a gallon. Still expensive, but we’re getting there. I just hope it doesn’t go back up soon, although I’ve given up all hope of ever seeing gas for $1.40 again.
By Brian Carr on Oct 25, 2006 | Reply
I think most people realize cheap energy is going to be the exception to the rule. Unfortunately, if you look at the historical trends, you can expect gas prices to start to increase in January, lasting through the summer.