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MoneyThursday, July 24, 2008 11:50 PM CDT
Local drivers happy to see gas prices fall, but 'that's still high'
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BLOOMINGTON -- Kara Klockenga of Normal is not impressed that gasoline prices have dropped below $4 a gallon. “Oil companies tease us with a lower price,” Klockenga said as she filled up a work vehicle for $3.879 a gallon at the BP station at the corner of Clinton and Locust streets in Bloomington. “We get all happy when they’re under $4, but that’s still high.” | Find the best gas prices in Central Illinois

The pain at the pump subsided slightly in Central Illinois in the past week as gasoline prices have dropped from the unrelenting $4 a gallon that has been the norm for most of the spring and summer, but the still-higher-than-usual cost continues to deplete consumers’ wallets.

The national average cost for a gallon of regular gasoline remained just above $4 a gallon Wednesday while Bloomington-Normal drivers have seen some relief with an average cost of $3.98, according to AAA-Chicago. The local price was actually lower, at closer to $3.85 at many local gas stations. The average price is down from AAA’s recorded high of $4.17 a gallon on July 16, but it’s also still about 88 cents more than a year ago.

Gasoline prices dropped across the state as oil prices have fallen about $20 a barrel from a high of $147 a barrel earlier in July, said AAA-Chicago spokeswoman Nicole Niemi. It appears $4-a-gallon gasoline was the threshold for drivers to change their driving habits and cut down on fuel, which led to a decreased demand for oil and lower prices, she said.

“It would be wonderful to see even lower prices in the $2 range ... but now it’s definitely a sigh of relief to see gas prices under $4 a gallon,” Niemi said.

That’s not really the case for Klockenga.

If she pays 10 cents less for 10 gallons, she saves $1 — not a big deal, she said. But if the price was another $1 cheaper — around $3 a gallon — she’d save $10 on 10 gallons. That would make a difference, she said.

But Klockenga also is skeptical that prices will fall much lower than the current price.

And Niemi doesn’t have any certain assurances for her, either.

Niemi could not predict how much farther gasoline prices could fall or whether prices below $4 will mean drivers will go back to driving more, which could increase prices again. Tensions in the Middle East and the onset of the hurricane season in the United States also are possible threats that could shoot gas prices above their previous summer peak, she said.

The recent drop is a great relief — but it’s also a feeling that won’t last, said Robert Coone of Bloomington.

Prices will continue to fluctuate as oil companies work to get customers used to $4 a gallon, he said. He does not believe prices will ever go below $3 a gallon again.

“I never thought I’d see this,” the 81-year-old retiree said. “I remember when it was 12 cents a gallon.”

Take a look
The pain at the pump subsided slightly in Central Illinois in the past week as gasoline prices have dropped from the unrelenting $4 a gallon that has been the norm for most of the spring and summer, but the still-higher-than-usual cost continues to deplete consumers’ wallets. (AP Photo/Alan Diaz)
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Reader comments on this story - 10 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

History Alum wrote on Jul 25, 2008 12:14 PM:

" Only In America... you're proving that the "dumbing of America continues daily". Drilling in Alaska and off the shores will do little to nothing about the price of oil in the US, especially since oil companies will be more than happy to ship said oil to countries with currency that is worth more. Big environmental impact for no real effect. Do a little research and don't just parrot the party line. "

clarkbar wrote on Jul 24, 2008 5:37 PM:

" I would like to apologize right off the bat here because I've said this 1000 times or more in the comments, but if some engineer or scientist would have the knowledge or courage or fortitude to come up with a viable alternative fuel other than fossil fuels to power just our cars and trucks down the highway the price would drop like a rock and problems would be solved. Airlines and trains and earth moving equipment would have plenty of fuel while we motor down our highways using something else. "

wanderwls wrote on Jul 24, 2008 12:13 PM:

" jj2 - good ideas for sure. I get SSD so there are a lot of things going on here. I drive maybe 2x a week, that's all I can do and get some food now and then. Will start going to food pantries this coming month as well. Not much concern about the baby boomers who helped support the world, not that we might need some assistance, that's for sure. "

ONLY IN AMERICA wrote on Jul 24, 2008 10:22 AM:

" Some 90 billion barrels of oil and a third of the world's undiscovered natural gas lie beneath an area north of the Arctic Circle, government scientists estimate in the largest-ever survey of the energy resources there. About 84 percent of the undiscovered oil and gas is offshore, the USGS estimated, but much of it is close enough to land to fall under national territorial claims. About a third of the oil found in the survey is off the coast of Alaska. Yet Democrat's & the Al Gore global warming gang hold up drilling. THE DUMBING OF AMERICA CONTINUES DAILY !!! "

jj2 wrote on Jul 24, 2008 9:31 AM:

" Oh, one more thing. For us on SS, I'm waiting to see what the government calculates our cost of living which has gone up on EVERYTHING because of gas prices. Will the match of cost of living be anywhere near what it has risen this year? And even if they do get it right, will they raise Medicare so the individual only gets a couple bucks of it?
Here's an idea, stop giving aid to other countries and take care of American's. "

jj2 wrote on Jul 24, 2008 9:23 AM:

" I'm lucky that I'm not working at this time. One of the good things of getting older, I guess. I live in a small town so I can walk most places. We are also working on getting an older golf cart running and that is what we will drive around town, weather permitting. If you have cut use, keep it up. It's the only way you will see gas back around two bucks. "

ONLY IN AMERICA wrote on Jul 24, 2008 8:46 AM:

" It's time to start drilling in and around America. This isn't the total solution however it is one America needs to take. Thank liberal democrat's and enviormental wack jobs for the high cost of energy. Why should American's pay for foreign oil which pays for terrorist's who want to take away our society and everything we stand for??? WAKE UP PEOPLE it's time to stop depending on foreign countries and start standing on our own.... "

Billy the Bard wrote on Jul 24, 2008 8:33 AM:

" Now how come Congress doesn't parade all the oil execs in now and question them on why they're starting to be so generous? Our own state gov't takes about 50 cents on the gallon; our federal quite a bit too. Perhaps we should start demanding more from our own gov't to stop their grevious price gouging! "

the_goat wrote on Jul 24, 2008 7:14 AM:

" I'm done complaining about it - it's out of my hands and a necessity for me to get to and from my job. I can't afford to move and paying for gas eats most of my disposable income so I'm not out "stimulating the economy". When things get bad enough that it effects the economy for a while (more than it did a couple weeks ago) maybe people will finally change something..... For now I just wish I was close enough to bike! "

johnd wrote on Jul 23, 2008 10:12 PM:

" As summer travel season begins to come to an end.They figure throw them a bone to get them to plan a few last minute trips.Soon gas prices will shift to excuses for home heating fuel costs rising.Its a pattern that is predictable after about the last 5 years now. "

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