Last week’s dramatic drop in crude oil prices is giving consumers some relief at the pump, as the price of gallon of regular self-serve gasoline has dropped 10 cents in the past week to an average of $4.01 nationally. Virginians are currently paying $3.92 per gallon. Gas price averages have fallen below $4 a gallon in 29 states, including Virginia, according to AAA Mid-Atlantic. Last week only 11 states had a nominal price below the $4 threshold. The price of gas in Virginia has dropped eight cents a gallon since last Friday when it hovered around the $4 mark, according to the latest Daily Fuel Gauge Report from AAA Mid-Atlantic.
"For the first time in weeks motorists are experiencing the falling price of gas," said Windy VanCuren, AAA Mid-Atlantic’s Public Affairs Specialist. "In the aftermath of last week’s steep decline in the price of crude oil, we are finally seeing a drop in the cost of gasoline. The old rule-of-thumb is still true; fluctuations in the crude oil market greatly influence changes in gasoline prices."
Gas Prices as of July 25, 2008, for a gallon of self-serve regular gasoline:
| | Price Today | Price Last Friday | Price Last Month | Price Last Year |
National | $4.01 | $4.11 | $4.07 | $2.94 |
Virginia | $3.92 | $4.00 | $3.97 | $2.82 |
Charlottesville | $3.95 | $4.01 | $4.00 | $2.82 |
Norfolk | $3.89 | $3.97 | $3.92 | $2.81 |
Richmond | $3.89 | $4.00 | $3.97 | $2.83 |
Roanoke | $3.83 | $3.93 | $3.90 | $2.74 |
"The drop in gas prices might not be as spectacular as some motorists had been hoping for or falling as fast as it went up," added VanCuren. "But we might be seeing the beginning of a trend toward lower pump prices."
Since setting a record high of $4.01 a gallon in Virginia last Thursday, the price of gasoline has dipped nine cents a gallon across the Commonwealth, where today’s nominal price is $3.92 for a gallon of regular unleaded.
"Historically, there has often been a lag before crude oil prices changes are reflected in retail gasoline prices," VanCuren noted. "Yet consumers haven’t forgotten the fact they were paying less than three bucks a gallon at this time last year." Based on the recent drop in crude oil futures AAA continues to believe the national average price will drop below $4 per gallon over the next week or so. "As always, the price of crude oil is one of the biggest factors in the cost of gasoline, comprising about 75 percent of what we pay for a gallon of regular gasoline," VanCuren noted.
Crude oil, which started last week at $145 a barrel lost more value Monday through Friday of this week than in any period of futures’ trading history, says AAA Mid-Atlantic. Crude Oil reached an all-time record of $147 per barrel on July 11. In contrast, prices closed yesterday at $125.49 per barrel, which is more than $21 below its all-time high price.
From coast to coast, the price of gasoline fell for the fourth time in the last twenty-three week period. At the same time, gasoline prices are still nearly 34 percent higher than they were at this time year. In fact, the current price is above a year ago for the 47th week in a row. For the first time ever the price of crude oil shattered the $100 a barrel barrier earlier this year on January 3. At that juncture the average price of gasoline was $2.96 in the Commonwealth and $3.05 at pumps across the nation.
The preceding was compiled from an AAA news release.