I know we have had several threads on gas prices, but I think the fact that the price is dropping so fast is worth a new one with discussion. In my area the price has dropped some 80-90 cents a gallon since its worst right after Hurricane Katrina. Shell and Chevron regular in my neighborhood was $2.39 this morning....and dropping an average of 3-5 cents a day. It gets back to what I have said so many times about supply and demand. The repair and restart of the damaged pipelines and facilities in MS, LA, and TX, together with a noted public ability to conserve and just drive less in the last few months and to purchase more efficient vehicles, has produced a situation which is is just the reverse of two months ago.......at least a temporary glut where supply now exceeds demand, and oil and gas producers....and of course station owners......have to lower their prices to keep selling.

To be honest, though, the long-term increase in demand from China and India...the world's two most populous nations.......cannot be suppressed, and it is going to have to be dealt with. New sources of oil and production and distribution facilities are going to have to be built or we are going to see a return to inflation in gas prices.

 

here in cali it doesn't drop that much though. at its top, premium was around 315 (the worst i have had), but now it's about 285

 

For premium? IL was $3.49 for regular

 

yup premium. during the price spike couple weeks ago, seriously the west coast (at least in cali) wasn't affected that bad i think

 

The state of Illinois was cracking down HARD on price gouging, so the stations here are terrified of raising their prices any because they don't want to get fined / shut down

 

I don't think the oil industry is that worried.

Exxon Mobil posted record third quarter revenues of more than $100 BILLION, which is higher than the annual GDP of Kuwait.

Looks like those 2 hurricanes were a boon for the oil industry.

 

After posting figures like that, I'm surprised nobody has tried any legal action so far.

 

It's hard to even claim price gouging.....much less prove it....with prices in most places (maybe CA excepted) less than $3 a gallon. Even right after Katrina, real price gouging was not looked into until the price got up to around $5-6. The burden of proof is on the accuser.....the State regulators.....not on the station owner. If the station owner can show the date and time he / she paid for a shipment of gas....and how much it costs ( properly run stations keep records of this) they can usually beat a price-gouging rap. In fact, station owners in some cases can file civil harassment charges in court against State regulators that bring frivolus charges or accuse them falsely....and the regulators themselves can be fined by a judge that dismisses a case he / she considers frivolous. For these....and other reasons.......price regulators think twice before they confront station owners....they had BETTER know what they are doing.