BLOOMINGTON - At least one economic fallout is positive: Gasoline prices have dropped. Prices at the pump have continued their slide away from $4 a gallon for a variety of reasons. | Find the best gas prices in Central Illinois
Decreased demand, the lower price of crude oil, a supply increase in the weeks after the hurricanes hit the Gulf Coast, competition among gas stations and the relatively quiet environment in the Middle East keep prices lower than earlier this year, experts say.
The national average for a gallon of regular, unleaded gasoline was $3.633 Tuesday, according to AAA-Chicago Motor Club. While AAA's overnight average price in Bloomington-Normal was $3.621 a gallon, many gas stations around town showed prices around $3.51 a gallon, and at least one posted a $3.49 price, according to www.gasbuddy.com.
That cost is still significantly higher than a year ago when the average price in the Twin Cities was $2.90 a gallon, according to AAA.
Demand for gasoline typically drops in the fall. This year, another trend has affected demand, as well, said Bill Fleischli, executive vice president of the Illinois Petroleum Marketers Association in Springfield.
"The scare in the economy has made demand down even more," Fleischli said.
Market indicators point to gasoline prices that could go down and stay down for a while, said David Sykuta, director of the Illinois Petroleum Council in Springfield. He wouldn't predict how low prices could fall, though.
"The good news is crude oil is down. In the long run, that's the single biggest predictor of gasoline prices," Sykuta said.
Consumers still can expect to be in a "see-saw period" as oil moves up and down as people react to financial news, Sykuta said.
Crude oil was up $16 a barrel last week, the biggest one-day jump.
Then, oil fell $10.52 Monday, its second biggest drop ever, after the defeat of the federal government's proposed $700 billion financial bailout. Oil rose $4.27 to close at $100.64 Tuesday as investors became confident that Congress will resurrect the plan.
Posted in Business on Wednesday, October 1, 2008 12:00 am Updated: 11:56 am.
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