Lower those gas prices!!

By Eileen Lehpamer

"Lower those gas prices!!" That's the cry at many a gas station these days.

But shouldn't we be happy? REALLY happy?

I mean, just over the summer, we were paying well over 4 dollars a gallon. In some spots, close to $5.

And today, I saw gas for $2.79 a gallon. Just over $3 in most spots on the Island. (Keep reading for exactly where.)

Well, those who are upset that gas prices aren't even lower are comparing them to the tumbling crude oil prices.

You see, according to the Energy Information Administration and a recent survey by Senator Charles Schumer, crude oil prices have fallen 52-percent since July. But gas prices have only dipped 23-percent.

So, it begs the question: Why aren't gas prices down 52-percent as well? Imagine paying $1.99 a gallon again.

Senator Charles Schumer blames the "big" oil companies, saying they're intentionally being greedy.

I also spoke to a Shell gas station owner in Jericho who said he's not getting that much lower of a price for his shipments, and so he can't dip his price below $3.29 a gallon.

But, economist Dr. Irwin Kellner brings up an interesting counter point. He says you can't expect a percentage to percentage drop. 52-percent to 52-percent. Instead, Dr. Kellner says, "My rule of thumb is that ever DOLLAR that a barrel of oil moves translates only into a PENNY a gallon for gasoline."

Hmmm. That's not what I want to hear.

But what's the explanation?

Dr. Kellner says, "There are so many elements that enter into the picture from when the oil comes out of the ground and when you pump gasoline into your car. There's the refining process, the transportation process, the marketing process... "

So, as promised, where can you find the cheapest gas on the Island?

As of Tuesday afternoon, it was $2.79 at America's Petroleum on East Sunrise Highway and N. Delaware Avenue in Lindenhurst.

Check out the News 12 Long Island Gas Gauge www.longislandgasprices.com

And don't forget to go to the website and update it with your own sightings of "cheap" gas; it helps us all.

Comments

[Dan]

Gas at America's Petroleum now down to 2.69!! cash only though. whoo-hooo!!

[John]

Wait a minute. I'm as annoyed at high fuel costs as anybody, but if gas was near five dollars and now it's less than three, that's about a 40% decrease in price. That's not too far off from your expected 52%, especially when you take into account non-proportional costs like rising rents, utilities, taxes, and salaries.

I mean, I've grown to hate the oil companies and the speculators "Enronizing" our fuel for us, but I think they're doing better by us right now than, say, LIPA.

[John from West Islip, New York]

Gas Stations in West Islip, particularly from Union Blvd, and Higbie lane, and west of the train tracks on Higbie are in a price war. I have seen it @ $2.93 per gallon, and it seems it drops the day after I fill up. Eileen, big fan of yours for news12 and 1010 wins! See you around the 'hood! All the best.

[Janice]

$2.79 in Lindenhurst!! Thanks Eileen, I'm on my way. I work in Amityville, so I'm totally stopping by. What's the highest you saw? Just curious.