The Enid News and Eagle, Enid, OK

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October 8, 2008

Fuel prices plummet 64 cents a gallon across Oklahoma since Sept. 16

Staff reports



Northwest Oklahomans are seeing some relief at the gas pumps since mid-September. Pump prices across Oklahoma have plummeted an average of 64 cents per gallon since Sept. 16, according to AAA.

“The driving force behind these lower retail gasoline prices is the falling price of crude oil on the futures market,” said Chuck Mai, spokesman for AAA Oklahoma. “Crude has fallen more than $55 per barrel since July.”

For the first time in several months, gas prices in Enid dropped below $3 last weekend. Gas prices around town average between $2.79 and $2.89.

AAA suggests there are five primary reasons for the drop in petroleum prices:

• Significant strengthening of the U.S. dollar as Europe’s banking sector deals with its own lending crisis.

• Continued low demand in the U.S. compared to a year ago.

• World economies and financial markets that are all suffering, lowering worldwide demand.

• Improving gasoline inventories in the U.S. in the wake of hurricanes Gustav and Ike.

• The lack of any bad news here or abroad that might be perceived as a threat to oil or gasoline production or distribution.

“Oklahoma’s pump prices are the envy of the nation today,” said Mai. “The statewide average for regular self-serve is $3.047, which is not only the lowest of all the 50 states, it’s also almost a nickel below the price of the state with the second-lowest average, Kansas, currently at $3.095 per gallon.”

Oklahoma college football fans driving to the Dallas area this weekend for the OU-Texas game would be well advised to fill-up before leaving home. According to AAA’s gasoline price Web site, www.aaafuel gaugereport.com, today’s average for self-serve regular in Dallas is $3.404, compared to Oklahoma City’s $2.954 and Tulsa’s $3.014 – and these prices continue to fall.

“As long as crude oil stays below $90 per barrel, I would expect gasoline prices to continue to fall.” said Mai. “Unless something happens to threaten supply, I wouldn’t be surprised to see the national average drop another 30 to 40 cents by Thanksgiving.”

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