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Storm may bring end to drop in E.V. gas prices
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A prolonged drop in gas prices in the East Valley could end over Labor Day weekend, but it all depends on Tropical Storm Gustav.
"Should the storm miss the region entirely ... the increase in crude (oil) prices we have experienced as a result of Gustav will be short-lived," said Linda Gorman, public affairs manager for AAA Arizona. "However, should refineries incur damage as a result of the storm, a rise in crude - and fuel prices - is likely to be longer lasting. It is unlikely that prices will continue to recede heading into Labor Day weekend until Gustav makes its intentions known."
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The price of oil increased from $114 to $119 per barrel this week after 85 percent of refiners in the Gulf of Mexico were forced to shut down as a result of the threat of the potential hurricane. The region accounts for more than a quarter of the nation's oil production.
Forecasters have warned that Gustav could grow into a Category 3 hurricane and head toward the Gulf over the Labor Day weekend. The result would not only mean damage to oil and gas refineries, but an ultimate increase in gasoline prices at the pumps.
East Valley motorists are paying $3.57 on average for a gallon of unleaded gasoline, a drop of nearly 7 cents from last week and a reduction in price for the sixth straight week.
Scottsdale drivers are paying $3.66 a gallon on average, a drop of 7 cents from last week.
Statewide, drivers are paying $3.63, a drop of 6 cents from last week. Tucson continues to hold the state's lowest fuel prices at $3.49 while Flagstaff remains highest at $3.91 a gallon, a drop of 4 cents from last week.
Nationwide, the average is $3.66, a drop of 4 cents from last week.
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