U.S Retail Gasoline Prices Drop and to Remain Stable

The gasoline prices have dropped over the past two weeks according to Lundberg Survey Inc.

Factors that contributed to the drop are the regional refinery issues in the Midwest and cheaper crude oil. The lower prices we have now are expected to last for a couple of weeks more. It may still be 11.89 cents away from the prices last year but at least it is declining.

The survey compared the gasoline prices in June 7 and June 21. The surveyors found out that the gasoline cost per gallon dropped by 4.16 cents which leaves the selling price at an average of $3.5969 per gallon. The prices vary in different states wherein the cheapest is at Tuczon, Az. at $3.24 while the highest is in Chicago at $4.23. While Chicago’s price seems higher, it is actually down by 25 cents.

Trilby Lundberg, author of the survey, explained that Chicago’s price is still the highest among 48 states on their list because of the refinery issues in the area. The state recently settled the issue but it may take time to pull the price as low as the other states.

Meanwhile, L.A gasoline prices average at $4.07 while it is $3.73 in Long Island, NY.

Prices in the Midwest went up earlier this month due to outages affecting the refineries which lasted longer that the analysts expected. This included Exxon Mobil Corp's refinery in Illinois losing a daily supply of 238,600 barrel. Issues were said to have been resolved but Exxon still announced that the company is closing their Torrance, Calif. refinery.

The good news is that the crude oil prices went down to help balance the prices despite the refinery issues. The prices went down because of the recession in China and the ongoing civil war in Syria.