Gasoline Prices in US Reach Lowest Price Since 2008 image

Over the past two weeks the US price for a gallon of gasoline fell to its lowest price since 2008 due to Hurricane Sandy, a drop in California pump prices and lower crude oil prices.

On November2nd, gasoline prices averaged $3.5454 per gallon, a decrease of 20.75 cents from October 19th, when the piece was $3.7529 at the pump. This was the biggest decline since December 5th 2008, when the petroleum demand crashed during the global recession. People spent hours in line for gasoline after Sandy destroyed much of the Northeast coast.

Trilby Lundberg, editor of the Lundberg Survey, said that although demand was very high in New York and New Jersey, purchases were down as many people were not able to get to fuel. Supply shortages sis not lead to an increase in the average gasoline price. In California the prices dropped 49 cents during the last two weeks, after an extreme increase in September due to refinery problems.

“There is a fear among retailers that they will be accused and prosecuted for price gouging if they raise prices enough to prevent running out,” said Trilby Lundberg. “It’s going to be a long and hard recovery for infrastructure and fuel supply but also for fuel demand.”