Why You're Paying Less at the Pump This Summer
By Ransdell Pierson
The average price of a gallon of regular gasoline fell 4 cents during the past three weeks in reaction to declining costs of crude oil, according to the Lundberg survey released Sunday.
Prices fell to an average of $3.67 a gallon for regular grade gasoline, according to the most recent survey, which was conducted on July 11.
"Crude prices have dropped in reaction to Libya having sizably hiked its oil production, and because Iraq's oil output has not being smashed by violence and turmoil there," said Trilby Lundberg, publisher of the survey.
%VIRTUAL-article-sponsoredlinks%The price of Brent crude in the U.K. has dropped by $8.35 a barrel in the past three weeks, while the price of West Texas Intermediate crude has fallen $6.43 during the same period, Lundberg said.
About a fourth of the crude oil price decline is now reflected at the pump, but drivers could see another 4 cent to 8 cent drop in gasoline prices in the near future, as retailers pass along more of their cost savings to consumers, Lundberg said.
San Francisco had the highest price within the latest survey at $4.12 a gallon, while the lowest price was in Tulsa, where regular grade cost $3.35 a gallon.
