The federal government noted today that gasoline prices have fallen to the lowest average since April this week.
The U.S. Department of Energy said this week's average price hit $2.85 per gallon, nearly 8 cents lower than the previous week.
Wholesale oil prices are less than $1.80 per gallon right now, meaning gas stations are seeing higher profit margins despite the lower prices for consumers at the pump.
Prices tend to fall at the end of the summer season, when government requirements for a more expensive “clean air” blend of gasoline come to an end. This year, because of higher prices, people may have also cut back on driving, thus reducing demand slightly.
An analyst at the Oil Price Information Service quoted by USA Today said gasoline prices will be “closer to $2 than $3 come Thanksgiving.”
What this means to you: Supply and demand are at it again, but this time in the consumer's favor. But the trend toward smaller, more efficient vehicles seems to be here to stay no matter the price of gasoline as spooked consumers know how expensive fuel can become in a short amount of
