tigerhonaker
10-01-2006, 04:20 AM
Prices provide relief
Dropping fuel costs have been a
welcome break for drivers
Friday, September 29, 2006
BY FRANK RADOSEVICH II
OF THE JOURNAL STAR
PEORIA - Pumping gas has become a bit less painful in recent weeks.
http://www.cleanmpg.com/photos/data/500/gas_prices.jpg
Drivers and businesses breathed a collective sigh of relief as the average U.S. price dropped by 66 cents per gallon during the seven-week period between Aug. 7 and Sept. 25. Some states have seen prices fall nearly 90 cents per gallon.
In Illinois the average price fell to $2.39 per gallon from a $2.99 per gallon a month ago. According to the Web site Illinoisgasprices.com, several gas stations in Pekin are as low as $2.08 per gallon for regular unleaded gasoline.
Filling up at Huck's Now, 1015 W. Camp Street, East Peoria, Mike Kenny of Peoria welcomed the change. When asked what he thought of the new prices, Kenny smiled and answered, "They're better than the high ones."
Local business, too, were relieved with the decline. Dennis Roe, director of maintenance at Citylink, said the drop would shrink the company's operational costs.
CityLink buses operate 44 daily fixed routes on bio-desiel fuel with each vehicle driving about 200 miles in stop-and-go traffic. During the month of August, CityLink's fuel costs were $107,000. With the latest prices, Roe expected Septembers fuel will be about $30,000 lower.
"This is helping us quite a bit," Roe said of the price drop. "This should be real good as far as cutting the fuel costs goes."
Many drivers, however, are left wondering what pushed the sky-high prices back down to earth.
"Truthfully, what's different now than last month?" Kenny asked.
According to a September USA Today/Gallup poll, 42 percent of Americans believe the Bush administration had "deliberately manipulated the price of gasoline so that it would decrease before this fall's elections."
Richard Gretz, an assistant economics professor at Bradley University, dismissed the idea.
"I don't know if that theory holds too much water," Gretz said.
He said the decline is because of a number of factors. Instability around oil producing nations, severe weather that disrupts production and other variables alarms investors and drives the price of crude oil up. Because few of these fears have not come to pass in recent months, oil markets are keeping prices in check.
Additionally, more people are traveling less as the school year begins and the summer driving season ends. And if this winter turns out to be a mild one, Gretz said, consumers can expect lower prices to remain.
"I think that there's been a lot of fear about a really bad hurricane season and a lot of fear about tension in the Middle East and those just haven't happened," Gretz said. "The fears that were (driving) up the prices are not being realized."
Kenny agreed.
"I don't think it has to do with the election year," he said about the price dip. "I think it has more to do with the Middle East."
Besides pleasing consumers, low prices give financial markets a nice boost. Edward Jones investment representative John Ritter said cheaper crude oil can increase businesses' profit margins and buyers' spending powers.
However, Ritter cautioned, the good times won't last forever.
"With the demand growing and the supply shrinking," he said, "we need to come up with a solution."
Frank Radosevich II can be reached at 686-3114 or fradosevich@pjstar.com.
http://www.pjstar.com/stories/092906/TRI_BB3GV9TT.044.shtml
Dropping fuel costs have been a
welcome break for drivers
Friday, September 29, 2006
BY FRANK RADOSEVICH II
OF THE JOURNAL STAR
PEORIA - Pumping gas has become a bit less painful in recent weeks.
http://www.cleanmpg.com/photos/data/500/gas_prices.jpg
Drivers and businesses breathed a collective sigh of relief as the average U.S. price dropped by 66 cents per gallon during the seven-week period between Aug. 7 and Sept. 25. Some states have seen prices fall nearly 90 cents per gallon.
In Illinois the average price fell to $2.39 per gallon from a $2.99 per gallon a month ago. According to the Web site Illinoisgasprices.com, several gas stations in Pekin are as low as $2.08 per gallon for regular unleaded gasoline.
Filling up at Huck's Now, 1015 W. Camp Street, East Peoria, Mike Kenny of Peoria welcomed the change. When asked what he thought of the new prices, Kenny smiled and answered, "They're better than the high ones."
Local business, too, were relieved with the decline. Dennis Roe, director of maintenance at Citylink, said the drop would shrink the company's operational costs.
CityLink buses operate 44 daily fixed routes on bio-desiel fuel with each vehicle driving about 200 miles in stop-and-go traffic. During the month of August, CityLink's fuel costs were $107,000. With the latest prices, Roe expected Septembers fuel will be about $30,000 lower.
"This is helping us quite a bit," Roe said of the price drop. "This should be real good as far as cutting the fuel costs goes."
Many drivers, however, are left wondering what pushed the sky-high prices back down to earth.
"Truthfully, what's different now than last month?" Kenny asked.
According to a September USA Today/Gallup poll, 42 percent of Americans believe the Bush administration had "deliberately manipulated the price of gasoline so that it would decrease before this fall's elections."
Richard Gretz, an assistant economics professor at Bradley University, dismissed the idea.
"I don't know if that theory holds too much water," Gretz said.
He said the decline is because of a number of factors. Instability around oil producing nations, severe weather that disrupts production and other variables alarms investors and drives the price of crude oil up. Because few of these fears have not come to pass in recent months, oil markets are keeping prices in check.
Additionally, more people are traveling less as the school year begins and the summer driving season ends. And if this winter turns out to be a mild one, Gretz said, consumers can expect lower prices to remain.
"I think that there's been a lot of fear about a really bad hurricane season and a lot of fear about tension in the Middle East and those just haven't happened," Gretz said. "The fears that were (driving) up the prices are not being realized."
Kenny agreed.
"I don't think it has to do with the election year," he said about the price dip. "I think it has more to do with the Middle East."
Besides pleasing consumers, low prices give financial markets a nice boost. Edward Jones investment representative John Ritter said cheaper crude oil can increase businesses' profit margins and buyers' spending powers.
However, Ritter cautioned, the good times won't last forever.
"With the demand growing and the supply shrinking," he said, "we need to come up with a solution."
Frank Radosevich II can be reached at 686-3114 or fradosevich@pjstar.com.
http://www.pjstar.com/stories/092906/TRI_BB3GV9TT.044.shtml