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Relief At The Pumps: Finally Below Two Bucks
January 16, 2015
Gas prices in the North Escambia area have finally dropped below $2 at several stations.
The price of a gallon of regular unleaded dropped to as low as $1.95 in the North Escambia area Thursday at the Speed Mart at Highway 29 and Tate School Road. A price of $1.97 per gallon was common as other stations in the Cantonment area, while the Tom Thumb in Molino was at $1.99.
In Century, gas was still above $2 — at $2.02 at the Century Food Mart and $2.09 at the BP. In Davisville, the BP was still at $2.09 late Thursday afternoon.
Across the state line in Alabama, gas was $1.99 per gallon in Atmore and as low as 1.88 in Brewton.
The national average of $2.13 per gallon is lowest in nearly six years.
Pictured top: Gas at $1.97 per gallon Thursday in Cantonment. Pictured inset: Gas prices in Atmore were at $1.99. Reader submitted photos for NorthEscambia.com, click to enlarge.
Comments
22 Responses to “Relief At The Pumps: Finally Below Two Bucks”
REGARDING:
“its that simple.. Price War. Keystone has nothing to do with it.”
Things are seldom “that simple”.
Every additional source of supply puts pressure on the other suppliers. If they raise their prices, buyers can buy from others. If countries whose main source of income is that one thing, then they can’t meet expenses or buy food. This leads to revolts against the government. There is war all over the Middle East. The leaders need sales.
Exploration goes down as supply goes up or demand goes down, but current production doesn’t just stop.
Keystone pipeline bringing in Canadian supply is unlikely to just go away.
Saudi Arabia isn’t the only player in the game.
David for more nuclear and geothermal
Most arguments I have seen posted are not very accurate. Their is simply too much oil supply on the market and driven down price. The Saudis are dumping oil at a loss on the market and it going to end american oil exploration here and jobs its that simple.. Price War. Keystone has nothing to do with it.
WONDERING AT:
“When the keystone pipeline is completed and our oil can be shipped out to the international markets, then we can go back to the good old days of $3.50 and $4.00 a gallon.”
Since when does an increased supply raise the cost?
We are already selling petroleum products to other nations. They send us their crude, our refineries refine it into things like gasoline, kerosene, diesel, heating oil, asphalt, and then sell the refined products to whomever wants them enough to pay most for them. The money from those sales will go to American companies and shareholders.
In the case at hand, that means American workers will be refining Canadian petroleum and we will have a reliable supply of the products. It also means if war breaks out somewhere else in the world, our supply won’t be cut off. In fact if what we have been selling to other nations is cut off so it can’t reach them, it will mean an even lower price for those who can still buy it, us.
David for good things
REGARDING:
“I remember when diesel fuel was cheaper than gas. Glad I don’t have one..”
A diesel gets at least 15 percent better thermal efficiency than a gasoline engine and the fuel contains something like 14% more energy per gallon.
So 1.15 x 1.14 = 1.31 times as much energy actually delivered from a gallon of diesel in a diesel engine than a gallon of gasoline burned in a gasoline engine.
If gasoline costs $2/gallon, diesel would be cheaper fuel to use as long as the price was less than $2.62/gallon. (I have no idea what it is lately.) These are just rough numbers.
If diesel cost more than that ratio, long haul drivers would probably start switching back to gasoline to save money.
People who have money to throw away may not care.
Since the price dropped so much recently, more people have more money to throw away.
David for freedom of choice
CONTEMPLATING:
“In a post disaster situation I would take a fifty five gallon drum of diesel over a kilo of gold hands down.”
You would need to buy that drum-full of diesel pre-disaster.
I will gladly swap you today.
David for free trade
I remember when diesel fuel was cheaper than gas. Glad I don’t have one..
I forgot to mention that the oil companies could be given tax incentives, i.e. subsidies to keep operations viable and reasonably profitable.
Cheap fuel is an opportunity to pay off the deficit and provide some measure of economic recovery. We may have sailed beyond the point of no return on our national debt, but let us at least make an attempt!
$1.00 a gallon gasoline with a .50 cent federal tax, a .30 state tax and .20 county tax, would yield $2.00 a gallon regular which is a price we can live with. Americans will effectively have more disposable income as their fuel expenditures will drop. I know I do, as I am rolling my 10 mile a gallon SUV (?) down the road more often, stopping at the Chinese buffet on Lindberg Avenue more often. In other words because I don’t have to spend as much on fuel, I am spending more on other things.
The $1.00 in taxes could be applied to the deficit and misguided military adventures what ever, and those state and local taxes can be applied to operating and maintenance cost.
Henry Ford was right about those international bankers and robber baron industrialist. We Americans are not cattle to be fed upon by the greedy. We are the people who had better stand up for our interest and protect our resources. Call your congress person and express your disdain for this pipeline scheme.
Nancy Pelosi is proposing a gas tax hike…I suggest we all contact our congressman and representative to let them know exactly what we think about that!
The federal gas tax is what pays for keeping the interstates driveable. It’s what paid to put the I-10 bridge back up after Hurricane Ivan knocked it into Escambia bay. It hasn’t been raised in 25 years while the price of everything else has gone up, like prices always do. Nobody wants to pay more taxes, but if you want to have nice things, like interstate highways that don’t have huge potholes in them, or bridges that don’t fall into the Mississippi river and kill 13 people like the I-37 bridge up in Minnesota back in 2007, you have to pay for them. That’s just a fact of life, like having to pump out the septic tank every once in a while or having to buy school clothes for the kids. Some stuff you just have to pay for and get done.
The Keystone pipeline was built several years ago. It travels from Hardisty Canada to Regina Canada, then turns south just below Winnpeg. It then travels south through the Dakotas and Neb. It ends up at Steel City Kansas where it turns east to Illinois, Wood River refinery and Patoka refinery. The Keystone XL Pipeline is an alternate route that is being requested by the Canadian oil company. The proposed route is Southeast from Hardisty to Steel City, bypassing the Dakota oil fields, then turning south to Houston Texas. Where it will end up at an export refinery. Bye, bye, cheap oil.
The economy is getting better, what’s the problem?
/ sarcasm.
The price should still be lower than what it is now. Retailers are still gouging the driving public with inflated prices.
Mean while they are laying off people in the oil fields left and right ,, yes gas was high but what i always said was , stop going to Wal Art every day wasteing your gas Gas needs to go back to 2.00-3,00 dollars
Watch the price of gold fall as oil prices drop.
In a post disaster situation I would take a fifty five gallon drum of diesel over a kilo of gold hands down.
@Local Yocal, illegal for crude, but gasoline and diesel are exported daily.
Now Govt wants to increase fuel tax that will stay after gas goes back up.
Low gas prices are a double-edged sword.
It is nice to have cheaper energy, for sure. However, when the price gets too low to produce, production will slow/stop; pure economics. Currently, domestic production meets or exceeds middle east; however, the middle east cartels can produce it cheaper. What is happening is a price war US producers cannot win.
The Keystone is bringing Canadian oil to US refineries then going back to Canada for export. It is currently unlawful for the US to export domestic crude oil.
If prices go too low, jobs will be at stake and the economy could suffer.
Equilibrium.
429SCJ. You are misinformed. The Keystone Pipeline has nothing to do with our oil or shipping it to foreign/international markets. It will bring oil into American refineries from Canada. Refineries that already have a glut of Shale oil. Oil cannot be exported from the US because an export ban in place since the 70’s. So it isn’t gonna do anything to the price of gasoline. We only export refined fuels and the refineries cannot keep with what they have know.
Don’t worry, oil companies are already laying off workers and cutting production to force prices up again. American greed.
When the keystone pipeline is completed and our oil can be shipped out to the international markets, then we can go back to the good old days of $3.50 and $4.00 a gallon.
I want cheap fuel for Americans, let the rest of the world burn what they can find or take.
And just think if it weren’t for our county commissioners raising the gas tax 4 cents with out a vote of the people, our gas would be cheaper. remember that at the next
Election. they don’t care about our opinion. they only want votes.