Retail Fuel Prices Decline for Independence Day Weekend

Contrary to popular belief, gasoline prices don’t always increase going into major travel holidays. This year, the national average price of gasoline decreased from July 1 to July 4 by 1-cent per gallon and that’s the fifth time in the past 10 years the national average has fallenbefore Independence Day. Only three times in that period did prices go up and on two other occasions, they remained unchanged.

In Florida, Georgia and Tennessee, each state’s average price of unleaded regular gasoline also declined by identical amounts, 2-cents per gallon from July 1 to July 4. Over the past week, the average price in Florida, Georgia and Tennessee has dropped respectively by 4-cents, 5-cents and 4-cents per gallon.

The reason for the decline in gasoline prices according to the U.S. Dept. of Energy, is the continuing decline in consumer demand coupled with the highest unemployment rate seen in 26 years. Additionally, the International Energy Agency, the Paris-based research organization that monitors worldwide supply and consumption patterns, says that demand for transportation fuels is unlikely to return to former highs because of advances in fuel efficiency and altered driving habits, and it reported that “current fuel consumption levels may well be seen in retrospect as the peak of U.S. oil demand.”

On the New York Mercantile Exchange (NYMEX) crude oil closed Friday at $66.73 per barrel and continues to decline from the highest week-ending price seen so far this year of $72.04 per barrel on June 12.

CURRENTANDPAST PRICE AVERAGES

Regular Unleaded Gasoline

Current Week Ago Month Ago Year Ago

National: $2.618 $2.643 $2.592 $4.103

Florida: $2.647 $2.683 $2.566 $4.065

Georgia: $2.465 $2.511 $2.440 $4.028

Tennessee: $2.454 $2.494 $2.413 $3.934