U.S Gasoline Price at Its Lowest Level in Nine Months: Lundberg Survey

Gasoline price in a number of U.S. states has reached its lowest level in nine months, according to the latest Lundberg survey.

According to Lundberg Survey Inc., the price of regular gasoline decreased by 2.01 cents to $3.3628 per gallon between October 5 and 18.

The Camarillo, California-based Survey firm reported that the prices of gasoline fell as the U.S. benchmark West Texas Intermediate (WTI) crude oil slid by $3.03, or 2.9 percent, to $100.81 per barrel on the New York Mercantile Exchange (Nymex) during the survey period. The company collected information from about 2,500 filling stations.

Trilby Lundberg, president of Lundberg Survey, told Bloomberg in a telephone interview, “It would take another substantial downturn in crude oil for the retail gasoline price decline to continue. The squeeze is on, so we can probably expect that wholesale price-cutting will probably slow or ease,” noting that wholesale gasoline margins have shrunk.

To date, the highest recorded gasoline price was $3.795 per gallon on Feb. 22 and among 48 states, the San Francisco Bay Area sold the most expensive at $3.81 per gallon. Meanwhile, the lowest gasoline price was in Albuquerque, New Mexico at $3.03 per gallon.

The data come just in time when the trends favor lower gas prices. The decreased demand for fuel and rich U.S. gas supplies were due to the end of the peak summer driving season.

Last month, the American Automobile Association, Inc. reported that retail gas prices slid at their fastest rate in almost a year, pushing the national average to its lowest level since January.

Another reason for the declining gasoline price, according to the Energy Information Administration, is the sudden surge of crude inventories at 6.81 million barrels to 370.5 million Oct. 4.

However, the low gasoline price will not last long as nine analysts surveyed by Lundberg forecasted an increase within the week.