Wednesday, October 15, 2008

Cheap Gas

Some gas stations in South Florida are going below $3 a gallon.

Gasoline prices are dropping fast nationwide, with the average price for regular gasoline at $3.16 Tuesday. That’s causing a domino effect that’s slowly trickling down to South Florida.

Experts predict pump prices will fall as much as 20 cents or more in the next week.

“Wholesale prices in the state are down to about $2.10 per gallon or less and that puts the cost into stations — depending on taxes — at well under $3 per gallon,” said Tom Kloza, chief oil analyst with the Oil Price Information Service, in an e-mail message.

A few gas stations in South Florida on Tuesday were selling low-grade gas for $2.99 a gallon or less. For example, a Hess station in Tamarac was selling regular gas for $2.89 and a Sunoco station in Miramar was selling regular gasoline for $2.95.

The title of the article is “Pleasure at Pump.” Such a deal. Everything is relative; when gas hit $3 a gallon last year, there were predictions of riots in the streets. Now we’re supposed to be grateful.

The down side is that falling oil prices mean that people are buying less, which doesn’t have as much to do with conservation as it does with the economy the reality of supply and demand in a recession; the supply is up because the demand is down because people are running out of money.

By the way, on my way to the office this morning, I saw regular gas at $3.59 on US 1 and SW 104th Street in Kendall, which is south of Miami; $3.07 on NW 36th Street north of Miami International Airport; and $3.29 at my usual station in Miami Springs.