Missouri Reports Statewide Average Gas Price Below $2
October 15th, 2006 | by Brian Carr |According to Gasbuddy.com, Missouri is the first state to report a statewide average gas price below $2 per gallon in well over five months. The national average gas price is now down to $2.23 per gallon, the lowest average price since early February.
Since hitting its record high of $3.06 on August 5, the average price of gasoline has been in a bit of a freefall, losing over 25% of its value. Much of the price drop can be attributed to the just as dramatic fall in the price of crude oil, which is down a little less than 25% since hitting its record high of 78.40 on July 14.
Despite the fact the Organization of Petroleum Exporting Countries (OPEC) recently decided to reduce crude oil production by 1,000,000 barrels per day, many analysts are predicting gas prices will continue to drop throughout the winter - especially if temperatures stay relatively mild.
Another reason for the decrease in price of gasoline is the switch from “summer blend” fuel to “winter blend” fuel. Summer blend gas tends to cost between $.10 and $.15 more per gallon because of extra additives that help to cut down on emissions and smog.
Whatever the main reason behind this dramatic decrease in the price of gasoline, it’s pretty amazing that in the span of ten weeks we’ve gone from talking about the very real possibility of $5 gas to actually seeing gas prices drop below $2 in many locations across the country.
