How low will gas prices go?
Published 12:00 am Tuesday, January 20, 2015
- An Arco gas station in 2015.(Ryan Brennecke / The Bulletin, file)
Central Oregon drivers are breathing a little easier at the pump these days as prices continue to drop and are now hovering above $2 a gallon for regular unleaded gasoline.
Hundreds of drivers filled up Monday morning at the ARCO gas station on SE Third Street and Murphy Road in Bend, the cheapest place in town at $2.03 a gallon.
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Richard Doerr, who has worked at the ARCO for two years, said his hunch is drivers can expect it to drop even lower.
“Wednesday, it’s going to go down to $1.99,” said Doerr, who indicated he’s been paying attention to crude oil prices, which have fallen below $50 a barrel.
Many drivers said Monday although they haven’t changed their driving habits, the low prices are still making life a little easier.
“The more it drops, the more food I can buy,” said Doerr. “I wish it could have been this way in the summer so I could have gone fishing more.”
With prices so low, it’s hard to imagine the Oregon average for unleaded gas was close to $4 a gallon in July, according to AAA.
The national average, according to the travel organization, was $2.06 a gallon Monday.
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While the low price of gasoline is fortunate for drivers, the change may not stick around long enough for businesses to change their practices.
Dennis Heman, owner of High Desert Courier Services based in Bend, said when gas prices are down it helps, but it hasn’t changed what they provide to customers. The company delivers statewide.
“It’s all customer-based, not fuel-based,” he said. “This is probably a relatively short-lived phenomenon.”
The price has already dropped below $2 a gallon in some Oregon cities. A Roseburg gas station was reported to have the lowest at $1.85 a gallon, according to GasBuddy.com, a website that monitors fuel prices.
Diesel fuel has followed suit and dropped to about $2.50 a gallon in Central Oregon, according to the fuel price website.
The price of crude oil around the globe has lost more than half its value since the summer, according to AAA. Financial experts have attributed the price drop to the United States producing more oil and the Organization of the Petroleum Exporting Countries keeping a steady flow to global markets.
According to AAA, Americans saved about $14 billion on gasoline in 2014 compared to what they paid in 2013, with the majority in savings coming in the last few months of the year. Each household saved an average of $115, according to the organization.
— Reporter: 541-617-7820, tshorack@bendbulletin.com