Gas for less than $2 per gallon

November 6, 2008 9:33:39 PM PST
It's no secret that a silver lining in the current economic downturn is falling gas prices. That was especially true in Quakertown, Pa. where action news found a Hess station selling a gallon of regular for $1.99 per gallon on Thursday.

Word spread fast, and soon drivers were lined up, even out into the street, in order to save a few bucks to fill their tank.

"I think it's fantastic," said Ray Fulton of Newfoundland, Pa. "The way it ought to be all over the U.S.!"

Motorists say these are the lowest gas prices around. A few miles down route 309, gas was 20 cents higher at $2.19 per gallon.

The average in the 5 county Philadelphia region is $2.49. That's down nearly a dollar from a month ago when it $3.43. And 5 months ago, average regional gas prices peaked at $4.16/gallon.

After paying $25 week to car pool 45 minutes to work, Trang Espinoza says she is back behind the wheel of her own car.

"It's a good deal for me. Before it was expensive, I didn't drive. Now that it's down, I'm driving again," Espinoza said.

Unfortunately, the gas didn't stay below $2 per gallon for long. Hess raised the price twice while we were there... First to $2.09 a gallon, then $2.13.

Still a low gas price for the region.

So, what is the reason behind these low gas prices?

"Demand is down, supply is up. Product inventory is backing up at the refinery so they're lowering the price trying to move more product out," Ross DiBono of the Gasoline Retailers Association said.

Ross DiBono says nationally, refinery sales for gasoline dropped 8 percent for the month of August, and then 9 percent for the month of September. Global demand is also down and Wall Street speculators have been dropping their oil stocks. Price on a barrel of crude oil is now at $61 where it has been over 150 a barrel this summer:

"At $61 a barrel, many experts feel that oil is still overvalued, they think probably the correct value for the foreseeable future is somewhere around $50 a barrel," DiBono said.

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