By the numbers:
$3.18 average local price per gallon of regular gasoline one year ago.
$2.83 average local price per gallon on Tuesday.
$6.26 savings per 20-gallon tank over last year.
$700,000 annual budget for fuel for the City of Springfield.
Drivers are spending less on gas — which went as low as $2.79 at some Springfield stations Tuesday — meaning more money for other necessities and savings for local businesses and governments.
Compared to this time last year, Americans have an extra $110 million a day in their pockets they’re not spending on gas, according to GasBuddy.com, which watches prices at more than 133,000 stations in the U.S. and surveyed 391 area stations.
“I’m excited for sure, especially being a college student,” said Wittenberg student Nikki Strah.
In the Springfield-Dayton region, the average price of gas as of Sunday was 31.3 cents lower than this time last year, according to GasBuddy.
The average price nationally for unleaded gasoline Tuesday was $3.02. Ohio averaged $2.91 while local motorists could expect to pay slightly less at $2.83.
Many out driving on Tuesday said they know the price will go back up eventually, but the price break is nice for now.
“I’ll gas it up while it’s low and then I don’t have to fill it up as much when it goes back up,” said Tonya Arnold, of Springfield.
Crude prices cut
The biggest difference between now and last year, creating a 41.4 cent price drop in just the last month, is an OPEC price cut that began about three weeks ago, according to Patrick DeHaan, senior petroleum analyst at GasBuddy.com.
“The Saudis came out and said they are cutting prices for October crude oil. That was followed about a week and a half later by Iran and now Iraq,” DeHaan said. “You have three significant producers in OPEC looking at market share, all of which probably have the ability to produce more oil. They’d love to.”
A driver pulling into a station with an empty 20-gallon tank this week is keeping about $6.26 more after a fill up compared to last year.
Municipalities like Springfield are also positioned to benefit from the lower gas prices.
“Every little bit is a positive,” said Chris Moore, director of the City of Springfield’s service department.
Because the city purchases gasoline for its 260-vehicle fleet in bulk about twice a month, the price fluctuates less, Moore said.
The city most recently purchased regular gasoline for $3.09 per gallon, which is more than they paid at this time last year, but still a decrease from the summer when the price was $3.49 per gallon.
David Lisle of Fairborn estimates he spends $500 on fuel each week to power diesel and gas pickups as well as all the gas-powered equipment needed to run his masonry business.
“Right now you really don’t have to think about it when factoring it into (bidding) jobs. When it goes back up to $3.50, then we start adding more money on our jobs,” said Lisle, who owns Cappland Masonry.
Lisle said he may be able to squeeze a vacation out of the money he’s saving at the moment.
“It’s great now, but what’s it going to be in three or four months when the gas companies figure they need some more profits?” he asked.
Everybody wins — for now
DeHaan said with prices where they are, everybody wins. If prices dropped too much, suppliers and wholesalers could get hurt, but that would require a drop in crude oil prices from $80-a-barrel to somewhere in the $60s, he said.
“When gas prices are in a downward trajectory, that’s when retailers are doing the best,” he said. “When prices are increasing rapidly, that’s when they don’t do very well at all.”
Nearly 70,000 gas stations in the U.S. are selling under $3 gallon versus around 7,500 stations one year ago, according to GasBuddy.com.
DeHann expects prices to continue to drift lower at least for the remainder of the week, except in the Plains states, where supplies have tightened due to seasonal refinery work.
The lowest priced metro area is Chattanooga, Tenn, where gas was selling for an average $2.67 Tuesday.
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