The price of gas

Thought for the day

As I was about to drive 350+ miles from Laguna Beach to Carmel Valley for Thanksgiving, the following article in The Hill caught my eye.  

CLARKSBURG, W.Va. – Starting Monday, Nov. 21, the price of a gallon of gas at hundreds of Sheetz stations will be $1.99.

The gas station chain said the discount will last through next Monday, Nov. 28.  Only the price of Unleaded 88 is being dropped, so the deal is only available at the 368 locations Sheetz sells that type of gasoline.

The $1.99 price falls below the typical price of gas at the moment.  According to tracking by AAA, the national average is currently $3.66 per gallon.  Even the cheapest state for gas, Texas, still has an average of $2.99.

As it turns out, there is more to this story than meets the eye (or price at the pump).  For people who drive older cars (pre-2001), the Sheetz deal isn't recommended.  That's because Unleaded 88 or E-15 gasoline has a higher amount of ethanol and is not compatible with every vehicle. 

Despite these bumps in the road, I wish Big Oil companies like Shell, ExxonMobil, Chevron and others had the courage to follow Sheetz's lead.  I paid a low of $5 a gallon for gas in Santa Barbara, compared to nearly $7 a gallon just a few months ago.  Is there a downward trend in sight?

According to Patrick De Haan, head of petroleum analysis at GasBuddy, the answer is yes.  "Everyone will be seeing relief at the pump this week, with even more substantial declines on the way as oil prices plummeted last week to briefly trade under $80 per barrel."

I wonder what the price of gas will be when Hanukkah and Christmas roll around? 

-DF