Gas continues to go down

It is no surprise that gas prices are extremely low these days in South Florida. I actually pumped a tank full at $2.49 a gallon the other day. Talk about a sigh of relief after spending around $3 a gallon this whole summer. A Los Angeles Times story has a few ideas on why this may be so.

In an article titled "Gasoline Prices Fall for Eighth Straight Week," it mentions that according to the Energy Department's statistics, the national average on unleaded gas was $2.31 a gallon on Monday, nearly a 7 cent drop since the previous week. "Since early August, the retail average has plummeted 72.8 cents a gallon nationwide and 63.6 cents in California. Industry experts expect the trend to continue."

That is great news for anyone with a vehicle! But, why is this so? It is amazing how gas prices are able to fluctuate the way they have been for this year. One attributing cause is the decrease in crude oil prices, which are at about $61 a barrel now; a remarkably lower number than the $77 figure in July. Also, "Analysts say the recent price break stems in part from refiners trimming their profit margins after months of unusually high earnings."

Remind me to thank the oil refineries for realizing the extent to which they made a profit this past year.