Washington Gets a Break at the Pump
Washington Post Staff Writer
Thursday, September 14, 2006; 12:54 PM
The price of a gallon of regular gasoline has dropped 14 percent during the past month across the United States and in the Washington region to its lowest level since early spring, according to the AAA Mid-Atlantic automobile club.
A gallon of self-serve regular today sells for an average of $2.58 nationally, down from $3 a month ago, and $2.63 in the D.C. metro area, down from $3.07.
Some gas stations in the District, where rents are higher and competition is lower, are selling regular for as much as $2.90 today, according to AAA data. The average price in the District is $2.77, down from $3.20 a month ago.
The days of $3-a-gallon regular may be over, at least for now, according to John B. Townsend II, manager of public and government affairs for AAA Mid-Atlantic.
"We think gasoline prices will drop another 10 percent" this fall, Townsend said.
The drop comes as the November mid-term elections approach, helping to deflate one issue that Democrats have seized upon.
Gasoline prices hit a record $3.23 a gallon in the Washington region on Sept. 6, 2005, in the aftermath of Hurricane Katrina, according to AAA.
Today's lower prices are the result, experts say, of ample supply, decreased demand after the heavy summer-driving season, a calmer than expected hurricane season, the lower price of crude oil and the switch by refiners to less-expensive winter blends.
But today's prices should be no reason for celebration, Townsend said.
"We are seeing dropping prices, and that's great," he said. "Certainly $2.58 a gallon looks like a bargain compared to $3. But historically even $2.58 isn't a bargain. The average price of regular gasoline since 1999 is $1.59."
