Expect gas prices to fall below $3
(Curtis Compton, ccompton@ajc.com)
Is it possible the average price at the pump could be below $3 a gallon by the time leaves begin to change?
Absolutely, according to experts who follow fuel price trends, and some areas of Georgia have already broken the barrier. At one station in Macon on Friday, unleaded regular was selling for $2.90, and in Duluth and Suwanee prices were as low as $3.04 and $3.05, respectively.
Higher oil production, an existing ample supply of fuel, falling crude oil prices, lukewarm consumer demand and a drop in contracts for wholesale delivery of fuel to gas stations in the fall are the right ingredients for a further drop in gas prices.
Barring any unforeseen calamity that might disrupt production or distribution, such as a hurricane that would interrupt delivery from the Gulf of Mexico or block tankers from arriving in Savannah, or a major conflict in the Middle East, the price trend should continue, even with the arrival of summer and more vehicles on the road for vacations.
“[T]he market is suggesting gas below $3 by Halloween, and certainly by Thanksgiving,” Tom Kloza of the Oil Price Information Service, told USA Today. Some experts, however, note that gas prices typically drop in the fall before rising again as winter fuel demands kick in.
While consumers in Macon may be seeing prices already below $3, AAA spokeswoman Jessica Brady said it will be a while before prices that low become widespread in metro Atlanta.
“I think prices will continue to trend as they have,” Brady told The Atlanta Journal-Constitution. “I think we could dip below $3 in some areas. I don’t think we are going to see a below-$3 average across the board.”
According to the OPIS’ latest figures, the average price for regular unleaded gas Friday in metro Atlanta was $3.28, which is down 21 cents from a month ago and 29 cents from a year ago. Regular unleaded was already as low as $3.04 and $3.05 at Costco and Kroger stations, respectively, in Duluth and Suwanee, according to Atlantagasprices.com. Gas was highest in Atlanta, especially in the northeast and northwest, with some stations selling regular unleaded for as high as $3.79.
The national average price for regular unleaded is currently $3.47. Earlier this year there were fears that gas prices could hit $5 a gallon this year, mainly due to Mideast tensions, oil refinery glitches that hindered supplies and energy speculation.
Tell us what you think about the site
Customer Care »
Vacation stops, manage subscriptions and more
AJC Services
Sections
Other Editions
Visitor Agreement | Privacy Statement
© 2013 The Atlanta Journal-Constitution
115 comments Add your comment
Mister.Earl
June 22nd, 2012
3:21 pm
Fox News Gets It Dead Wrong Again
In line with GOP messaging strategy, Fox anchors hyped rising gas prices as an “opportunity to disrupt” a positive economic narrative and perhaps even “de-rail” President Obama’s re-election. Fox’s energy “expert” Eric Bolling went so far as to declare that high gas prices “will take down the presidency.”
But as oil analyst Tom Kloza anticipated, Fox’s astronomical predictions have turned out to be “nonsense.”
RHarris
June 22nd, 2012
3:21 pm
CCCC,
Your little club is crap. Get a non-dbag personality.
Proud Lib
June 22nd, 2012
3:22 pm
Exactly you Republiturds! You were quick to groan, point and blame Obama when the prices were high. It was his fault according to YOU! Now that prices are falling lower than they’ve been in years why aren’t you “praising” him? Oh we see…when things go bad, it’s Obama’s fault. When things go good, well we don’t hear a PEEP. You ‘turds will ALWAYS complain about Obama. Racist, uneducated pigs. (And I’m white!)
Mister.Earl
June 22nd, 2012
3:27 pm
Fox News Lies
Analysts expect prices will continue to drop this summer as a result of easing tensions in the Middle East, rising domestic production and decreasing global demand.
These market factors were largely overlooked by Fox’s talking heads as they blamed President Obama for rising gas prices. But now that prices are falling, Fox has changed its tune. Stuart Varney summarized Fox’s contradictory narratives, saying:
STUART VARNEY: [Obama] has had nothing to do with bringing the gas price down the last few days. He’s had everything to do with pushing the gas price up over the last three years.
Sheesh, President Obama cannot win.
John
June 22nd, 2012
3:34 pm
They already should be below 3 bucks a gallon, The high was @ 142 a barrel Ie: 4 dollars at the pump, It is now roughly half that, so it should be 2 something now!
Proud Lib
June 22nd, 2012
3:35 pm
In the case of Stuart Varney he is acutally a Republitard as demonstrated by his dumbarse analysis.
Steve
June 22nd, 2012
3:38 pm
Obama should get the credit for when gas prices drop; he gets the blame when they rise!!!
Tired of them all
June 22nd, 2012
3:39 pm
I agree the president does not dictate fuel prices. The Obamabots want to forget blaming Bush when ot reached four bucks under his watch. What a president CAN do to impact prices is sign or announce legislation. Ban drilling the gulf? Prices go up. Allow new drilling or exploration, or even a Keystone pipeline? Prices go down. If you choose to believe there is zero correlation, I have a great business opportunity for you sucker.
Arlantan
June 22nd, 2012
3:40 pm
It appears all the liberal posters weren’t alive in the W era – everyone from Nancy Pelosi to the neighborhood lib blamed Bush and his “big oil” buddies on high gas prices in 2008. Today’s lowering prices are due to a worldwide economic slowdown and nothing to do with BO – well other than his contributions to America’s economic slowdown….
ConcernedCitizen
June 22nd, 2012
3:44 pm
Reqyulations are not always bad, but the best answer for the gas price situation would be to remove oil from the commodities market and let the actual consuming market set the price rather than a speculator or group of speculators. If they want to speculate on oil as a commodity then let them buy and take possession of the amount of oil they are speculating on and hold it until the time period they have speculated the price will be whatever they have deemed it will be. There would be more reason about the price of oil if they actually had to put their money in play at the time.
4dabirds
June 22nd, 2012
3:44 pm
Isn’t it amazing how you never heard of weather ever having anything to do with gas prices back in the 70’s, 80’s and 90’s. Even more amazing is how gas prices are going down in time for the election. Is it no wonder that our government only has a couple of refineries operating and controlling the supply and demand? Everything we all think we know about oil, is really nothing but BS! Yes, I am happy about prices going down, but my guess is that they never should have gotten to where they are today.
HENRY
June 22nd, 2012
3:47 pm
i predicted this world wide economic recession years ago when the oilshieks first started their hugh price increases and therefore hugh gas costs. you cannot expect the economy to continue like it did in the 90’s if the middle class has to pay 40 to 50 per cent more of their normal expenses just to get to their jobs.
c-bear
June 22nd, 2012
3:48 pm
Oil @ $80/bbl should have gas @ 2$, remember oil @ $130~ and gas @ $4+ hmmmm…
oil dirt cheap means dirt bags get little revenue-blame speculators
rob
June 22nd, 2012
3:49 pm
Yes, President Obama asked the Saudi’s to raise their oil pumping production to help him out, and since they have him in his back pocket (lets bow to a prince) and they know that if someone else was elected that our oil drilling on our own soil will hurt the Saudi’s greatly, so they will do anything to make him look good!
Mister.Earl
June 22nd, 2012
3:51 pm
Arlantan – the American economic slowdown has more to do with the digital revolution that you are admitting. Remember the Industrial Revolution?
One more thing, the economy was set on a downward path before Jan 20, 2009. Just thought you should know.
rob
June 22nd, 2012
3:55 pm
Proud Lib, thanks for telling us you were white ….what you didnt mention is that your a moron!
Summer Gas Prices Reasonable?
June 22nd, 2012
3:58 pm
[...] The Atlanta Journal-Constitution this morning is reporting that gas prices may be at or below $3 per gallon by fall! [...]
Bobo
June 22nd, 2012
3:58 pm
It’s not Obama’s fault. He’s too stupid and incompetent to possibly understand a global market. He can’t even understand why taxation doesn’t create money from thin air.
A.S. Mathew
June 22nd, 2012
4:00 pm
Even though the gas price is coming down, less cars are in the road, which is a clear indication that the people are not going to drive without an absolute need. The gas price will come down farther down.
Proud Lib
June 22nd, 2012
4:03 pm
Better to be a moron than a mormon-worshipper white ignorant man like yourself. Rob – ironic you should be named that. Mitt Robme has you in his back pocket…literally!
Proud Lib
June 22nd, 2012
4:05 pm
Rob is feeding into the Faux News rewriting of history and denial, denial, denial of actual facts to justify his own delusional beliefs. Just like Robme’s political campaign in Mass – didn’t work then, not gonna work now.
Bobo
June 22nd, 2012
4:07 pm
Being a Proud Lib is kind of like being a proud child molester. No one else is proud of you…..
Proud Lib
June 22nd, 2012
4:10 pm
Bobo…with a name like that no wonder you’ve developed a inferority complex…the same says it all! Republiturd. Republitard. Six of one, half a dozen of another.
Proud Lib
June 22nd, 2012
4:11 pm
….name says it all…BOBO!!!
Proud Lib
June 22nd, 2012
4:12 pm
You forget the FACTS ‘turds…gas prices HAVE fallen contrary to all that smoke screen and mirrors you threw up earlier in the year. And it’s ALL thanks to Obama. Suck it up and swallow your ignorance. We see through you.
al
June 22nd, 2012
4:14 pm
yes expect it to drop drastically before the election the double after.
Bobo
June 22nd, 2012
4:16 pm
Who are you talking to? You’re like a crazy bag lady screaming on the subway….. no one cares….and for your information I’m an independaturd or whatever other infantile expression you want to use.
Proud Lib
June 22nd, 2012
4:18 pm
You obviously know I’m talking to you BOBO or you wouldn’t have referenced yourself as an independaturd. If you didn’t care, you wouldn’t have respondend. Infantile? Kind of like comparing a proud lib to a proud child molester infantile name calling? Is that the best you can come up with BOBO?
Cookies
June 22nd, 2012
4:19 pm
Forget gas have you seen the price a pack of smokes? I’m glad i don’t smoke..
Proud Lib
June 22nd, 2012
4:19 pm
But good try denying who you actually are. I would to if I were a republiturd. Indpendaturd…sure you are.
Mister.Earl
June 22nd, 2012
4:25 pm
“Regular unleaded here in Middle GA is selling for $3.15/gallon. The far right here let Newt Gingrich rile them up and made them believe that a president can control the price of gas at the pump. Of course, they’re Fox News viewers. They aren’t saying one word about the lower gas prices. It’s as if their prior behavior on this issue never happened.
Fox is toxic for our democracy because of the lies, propaganda, and conspiracy theories the network creates and promotes. Logic would tell a rational thinking person that when a sentence begins with “Some say….,” more than likely there are no/few facts being imparted.”
Rev Al
June 22nd, 2012
4:26 pm
The world economy is going in the crapper so demand is plummeting….hence lower prices for crude….
Rev Al
June 22nd, 2012
4:27 pm
I see the libtards are out in full circle jerk force……see, Mr. Earl and company….
Ed
June 22nd, 2012
4:28 pm
Motorists will someday catch on to the fact that they are financing the so-called fuel efficiencies in more ways than one. First by paying more for less in their automobiles. Second, as the efficiency of engines increases it’s inevitable that fuel prices will increase as well. Producers and refiners must obtain a certain margin of profit to stay in business. The motoring public is going to pay that margin. The more effciencies demanded by the government, and the more unnecesary gadgets that are added will get to your pocketbook at the dealers and the gas pumps.
Proud Lib
June 22nd, 2012
4:29 pm
The scary thing about Faux News conspiracy theories is that they actually have people who believe the lies. And they’re allowed to vote. If Faux News said aliens had landed and that Obama was trading humans for alien intelligence, the crazies on the right would actually believe it!
Proud Lib
June 22nd, 2012
4:31 pm
I can see the Republitards are out in full circle jerk each other…..see Rev Al and company….
You libs
June 22nd, 2012
4:37 pm
I think somebody needs a nap….
Shelley
June 22nd, 2012
4:41 pm
As people lose their jobs, repubs always blame those who struggle as being lazy. I’ve seen hateful comments about “these losers should start their own company”. When Bain closed the steel mill, all those people lost their jobs and I’m sure it destroyed the local economy in that small town. To follow are people who can’t pay their mortgages, no buyers for sellers who can’t pay their mortgage, few jobs for the thousands who lost a good paying one and then maybe they fall under foreclosure. What befuddles me is when I see comments like “start your own business”. With what? The money fairy? People go through their savings when they lose a job and can no longer find another. And BANKS sure as hell aren’t releasing SBL’s! It if were THAT easy to start up a business we would ALL start up a business. It takes capital which the unemployed don’t have and banks won’t finance.
brother bill
June 22nd, 2012
4:51 pm
Of course Obama can control Gas prices. Just like he controls the wind and rain. He is the President, after all.
Chief76
June 22nd, 2012
5:07 pm
@john and @c-bear: While I agree gas prices are not falling as quickly as they rose when oil skyrocketed (they never do) there are two legitimate reasons (along with a host of illegitimate reasons) that are working against gas prices falling as far as they should: 1) the oil prices you see in the news are for FUTURE contracts. Usually for the following month and with it being this late in June, perhaps even for August delivery. So gas prices today are really working off oil prices from a month ago (it’s a little more complicated that this but this is the jist of it), and 2) we are in the summer months which means we have to buy a more expensive boutique blend of gas to keep smog at a minimum. That’s why a lot of these predictions are for falling prices through the fall because once the weather cools, we can buy a cheaper, “dirtier” blend of gas.
Expect gas prices to fall below $3 « The Rational Progressive
June 22nd, 2012
5:25 pm
[...] MORE: Expect gas prices to fall below $3 | The Biz Beat. [...]
Midtown123
June 22nd, 2012
5:40 pm
IF this actually happens, I’m sure the GOP will 1) take credit for it and 2) say POTUS had nothing to do with it at all.
Billy
June 22nd, 2012
5:58 pm
Just glad it’s going down. If you had to drive over 100 miles a day round trip to work, you’d feel the same way. If you’re a tree hugger, I saw a commercial the other day with a guy commuting via a pogo stick. Wear yourself out…
Truth
June 22nd, 2012
6:11 pm
Who cares what gas costs?
If you have to worry about what gas costs, maybe you shouldn’t have a car.
Live within your means and stop financing your lifestyle you peons.
Gerardo
June 22nd, 2012
6:12 pm
I hope it goes really high, like $7 a gallon. You people with you’re big SUVs make me sick.
Geno
June 22nd, 2012
6:23 pm
This is an election year ploy and you can bet prices will soar come December. I guess China usage is not a factor anymore!
Demographic Democrat
June 22nd, 2012
6:27 pm
That’s right…Dems are responsible for every rotten thing that happens in this country. And tea baggers are responsible for every good thing. Typical right mentality.
Atlantan
June 22nd, 2012
6:37 pm
Liberals – what exactly did Obama do to lower the gas prices? Seriously what did he do?
JoeBrave
June 22nd, 2012
7:23 pm
Smokewagon – “I would love to see more vehicles fueled by natural gas which is also abundant.”
Damn right and we could start by squeezing the Hot air outta that INEPT IDIOT residing in the White House at the moment.
splavistic
June 22nd, 2012
7:28 pm
So, where is all the GOP/FOX congratulations to the POTUS for lower fuel prices?! They sure were on his button when prices were rising. Personally, I know that POTUS can’t ‘fix’ oil prices, but the GOP sure thought that he could back a few months ago. So, job well done Mr. Obama!