API Answers Questions About Lower Gas Prices
August 30, 2008
Recenly the prices of gasoline have dropped without congress doing anything. We’re certain that’s what they were hoping for.
During the summer months it is common for gas prices to drop. So it’s no surprise that Nancy Pelosi did not bring forth any legislation to open drillingn the cost per gallon started dropping on its own anyway. THIS IS NOT A SOLUTION and is not over by a long shot.
Recently I posed as question to Jane Van Ryan at API as follows:
FedUpEditor: I see gas prices are going down all by themselves without the help of congress (I’m sure Nancy Pelosi is pleased at this). Our cost of gas has dropped to just over $4 a gallon here in California. This is happening even though [the price of] oil continues to rise. Can you give me a sound reason why this would be happening? My guess is that people are changing their driving habits and thus increasing the supply which would bring down the price in a free market. Are there other factors at play?
Jane Van Ryan: …the short answer to your question is that oil prices have fallen more than $30 a barrel from their high in mid-July, and the price decline is being reflected at the pump. You also are correct in saying that demand is down, which also can put downward pressure on price.
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