The U.S. average retail price for regular gasoline dropped 1.8 cents last week to 277.0 cents per gallon as of October 8, 2007, but is still 50.9 cents higher than last year. All regions were lower except on the West Coast where retail regular gasoline prices rose by 1.2 cents to 293.4 cents per gallon, the highest in the nation. The average price for regular grade in California was 299.6 cents per gallon, up 2.3 cents from last week and 39.5 cents per gallon over the previous year. The East Coast price fell 2.0 cents to 274.6 cents per gallon while the Midwest price decreased 2.7 cents to 275.5 cents per gallon, still 60.2 cents per gallon above last year. The region with the lowest price also tallied the largest decrease with the Gulf Coast falling 3.3 cents to settle at 266.7 cents per gallon. The Rocky Mountain region price decreased 0.8 cent to 280.2 cents per gallon.
Here's a chart of gas prices:
Notice that prices typically decline in the fall as the summer driving season comes to and end. That isn't happening this year. This could be a very important story as the Christmas shopping season approaches.
Also note that today's retail sales release was characterized as Retailers Report Slow September Sales. Gas prices could have something to do with that.
