Gas price average drops 24 cents
Last Modified: Sunday, October 28, 2012 11:25 PM
By Lance Traweek / American Press
The national average for gas is $3.55 — down 24 cents from a month ago but up 10 cents from this time last year, according to AAA. And prices will continue to decrease as expected for this time of year.
According to AAA, the average gas price in the Lake Charles metropolitan area is $3.31 — 24 cents below the national average and 10 cents below the state average.
“Typically when you get into September and October, those months are going to be some of the cheaper prices,” Don Redman, AAA public affairs specialist, said Sunday.
The price of crude oil is $85 a barrel — down $10 since last month.
Redman said there have been various assaults recently in the Middle East with the U.S. being the target, and that has made the market extremely nervous — the price of crude hovered around $95 in September.
“We also saw a sluggish economy in the U.S. and China. While most of the market tension has been on uneasiness in the Middle East, right now the market has shifted its focus away from that and refocused on the pure economy,” Redman said. “Many analysts have been saying for quite some time if you took away just the fear factor and look just at supply and demand then crude would be at about $77 a barrel.”
He said another contributor to prices declining is a “very healthy inventory of gasoline in the U.S.”
“Supplies are up and demand is down,” Redman said. “We are finally seeing what is typical this time of year, but it has come later than most years.”
Redman said with Hurricane Sandy headed toward the East coast, gas prices along the southern states should not be effected.
“They’ll have to do the same thing the Gulf Coast does, which is shut down refineries until the storm passes,” Redman said. “If there is an increase in prices due to the hurricane it will be isolated to the East coast but will effect the national average.”
According to Louisianagasprices.com, the cheapest gas in Lake Charles on Sunday was Sam’s Club at $3.17 a gallon. In Sulphur, the cheapest gas was $3.23 a gallon at Murphy USA, Kroger and E-Z Mart. In Westlake, gas cost $3.38 a gallon at Citgo. In Moss Bluff, the cheapest gas was $3.25 a gallon at Phillips 66 and Exxon.
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