Thursday, September 28, 2006
More bad news for Democrats
Gasoline prices have reached $2.199 here in Green Bay, they are plummetting elsewhere in the state, including Milwaukee.
It might be too much for motorists to even wish. Could gas drop below two bucks?
What was perhaps unthinkable just two months ago as drivers griped and forked over more than three dollar bills for a gallon of unleaded is now a possibility.
It depends on who is opining, but at the very least, plummeting gas prices have provided relief to maxed-out credit cards and teased smiles onto the faces of formerly grumpy motorists pulling up to pumps.
"We might have gasoline under $2 soon," said Darshan Dhaliwal, president of Bulk Petroleum Corp. which owns gas stations in 12 states, including Wisconsin.
In what's shaping up to be a perfect petroleum storm brewing over the Midwest, prices in these parts are much lower than elsewhere in the United States. That's because supplies, particularly of reformulated gas, are abundant in refineries in Illinois and other spots that supply the petrol to Wisconsin. Plus the price of ethanol - a component in reformulated gas - has collapsed.
Funny how Steve Kagen has since stopped blamed Republicans for high gas prices. Remember that Jamie Wall ad with him standing at a gas station? I do. I thought it was rediculous then, and I do now.
That is because gasoline prices are cyclical. Take a look at the chart below.
Near the end of the summer season, gas prices typically plummet. Hurricane Katrina only delayed the drop in price. At its peak, gasoline was at $3.23 (average) statewide. in 2005 It would then dtop to around $2.20 by Christmas.
Today gas hit that magic number of $2.20 here in Green Bay. With large amounts of gasoline surpluses and the drop in ethanol prices, gas very well could be as low as $2 by Thanksgiving.
You won't hear a complaint from me.
Labels: Election 2006
