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."
Posted in Business on Thursday, July 24, 2008 12:00 am Updated: 12:18 pm.
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