Today’s fuel price musings - Another slight drop

Add comment August 6th, 2008

Oil prices dropped below $118 today after the U.S. Energy Information Administration reported that oil inventories rose more than expected. Meanwhile, the EIA reported that gasoline demand was down 2.3 percent last month year-over-year. There’s no sign that under-$4 gasoline is going to immediately reverse that trend.

Galena-based analyst Jim Ritterbusch said, “I think we need to drop another 30 or 40 cents a gallon before we really see any change in driving habits.”

How far down will prices have to drop before you’ll start driving more? What would it take to send you back to your SUV or truck? Or are you going to retain your new driving habits even if prices fall?

For now, just another slight drop, at least as of this morning (prices courtesy of AAAs fuelgaugereport.com).

Gasoline: Rockford dropped more than a cent to $3.89 a gallon. We’re still fourth in the state in gas prices. The Illinois average dropped less than a cent to remain at $3.97. The national average dropped  a cent to $3.86. Illinois still has the 13th-highest gas prices in the nation (including the District of Columbia).

Diesel: Rockford  rose almost a cent to $4.52 a gallon, but still down 29 cents in the past month. We also now have the second-lowest diesel prices in the state (above only Bloomington at $4.48). The state average remained at $4.66, down 16 cents in the past month. The national average dropped a cent to $4.63, down 17 cents in the past month. Illinois has the 22nd-highest prices in the country (including the District of Columbia).