UPDATE Drudge is reporting that gas in Iowa is down to $2.05 a gallon. As I said, expect that trend to continue over the next week or so around the country as states no longer have to comply with asinine reformulated fuel requirements.
Traveled to southern Virginia this weekend for a birthday party. While gas is still $2.79 a gallon here in McLean, VA (at the Exxon at Chainbridge and Old Dominion) it it is down about $0.20 from a few days ago. At the location of the birthday party though, it was $2.33.
Seems lots of peeople are noticing the drop in prices, but I don't think everyone really understands all the reasons.
Lower demand for gas with the end of the summer driving season and a drop in crude oil prices combined to send prices downward across the United States, according to Trilby Lundberg, publisher of the "Lundberg Survey."
Sure, reduced driving is lessening demand. But there is a bigger demon out there.
Specifically, come this Friday, September 15, 2006, in most places across this country the ozone season will be over and EPA's idiotic boutique fuel mandates will be lifted.
This year in particular, since the enviros managed to turn junk science into a ban on MTBE, its impact was particularlly hard hitting. Usually, in years past, it was good for an additional 30 or 40 cents a gallon. But without MTBE, we were forced to pay off the Iowa caucuses and use ethanol as an oxygenate. And, in addition to seeing the price of gas jump an additional 50 or more cents a gallon, those of use who choose not to waste our money on new cars and instead sacrifice for our family by driving a 10 year old car, also had the pleasure of experincing weird engine problems that arose out of the use of the 10% demon ethanol.
Damn environmentalists, though as a former some time lobbyist for the petroleum industry I can't say they aren't also without blame in seeking to keep prices high (as in, they have strenuously resisted any effort to do away with the boutique fuels program).