3-On Your Side: Why Gas Prices Drop So Slowly
PHILADELPHIA (CBS) -- Oil prices are on the way down so that means gas prices should slide too, right? But 3 On Your Side Consumer Reporter Jim Donovan finds that in this economy it's not that simple.
Oil prices have been on the way down, but gas prices haven't slid as dramatically, leaving some drivers wondering, where's my relief? According to AAA the average price of a regular gallon of gas in our region is around $3.68 in Pennsylvania, $3.48 in New Jersey, and $3.57 in Delaware. That's about six to seven cents lower than last week, but still ninety two cents higher than this time last year.
AAA says retailers usually cause the lag in prices and that's whether prices are going up or down. According to Troy Green of AAA, "When the prices increase rapidly, retailers will absorb some of those costs to remain competitive. and when they decline rapidly, they'll take their time in reducing the costs to try to make up for some of that loss."
In addition to the decline in oil prices, the end of the summer driving season on labor day should temper prices too. Green says, "The kids are back in school, people are back at work, you're no longer taking those summer vacations and gasoline demand is reduced. and that's usually when we see the price of gasoline decline, in the middle of September, going into October, November."
Until then you might want to shop with your steering wheel, and fill up in areas where there's competition among gas stations and prices may be lower.
Reported by Jim Donovan, CBS 3
