For the first time in years, a gas station in the United States is selling gasoline for less than $2 a gallon.
The milestone was reached on Wednesday when an OnCue Express station in Oklahoma sold their gas for $1.99 a gallon. But though gas is cheap in Oklahoma City, it hasn’t dropped so low elsewhere in the country. In fact, only 15% of gas stations in the US are even below $2.50.
International gas prices have been plummeting recently, dropping a total of 39% in just 5 months. Gas prices will most likely continue to slide now that OPEC has announced that they will not cut back on production despite the global oil glut.
When it comes to diesel prices, we’re not so lucky. While gasoline has fallen almost a dollar from its high in April, we’re still measuring diesel drops in cents. But for truckers, even the 2.3 cent fall from last week to this one can make a difference.
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Source: ttnews, overdrive, gobytrucknews
Image: cnnmoney
Cliff Downing says
But there is a broader way to look at the diesel cost thing. State fuel tax, being a factor for the interstate operator, plays in to this. Diesel fuel taxes are usually substantially higher than gasoline fuel taxes at the pump. And any associated discounts one can get thru the major fuel stops has a part. For instance, yesterday, I got a full 96 cents off the cash pump price for diesel at the Pilot at Walcott. Cost for fuel (including the fuel tax) was only $2.58 a gallon. Without fuel tax, it was $2.44. Flying J in LaSalle, IL was even better (but I wasn’t going by there). A full $1.04 off the cash pump price. Price including fuel tax, $2.70. Minus the fuel tax…. $2.26. Even discussing gasoline vs diesel pricing boarders on nonsense, even for the average consumer. A diesel car will get substantially greater fuel mileage than any gasoline engine in the same car. In some cases, so much so that diesel at a higher price is still the cheapest cost per mile.
Rick Fessenden says
I am sure all of you who were blaming the president when prices were high are thanking him now, right? Right?
David says
Um, we had a gas station here in Mississippi a couple months ago sell gas for $1.99 a gallon. It was a grand opening but still…
Heim Trucking says
I have been hearing a lot of talk about cheaper fuel. Don’t get it. They have been pumping like mad for 50 years, record profits regularly , and have a lot more then we need for awhile. Prices are still much higher then they should be. It’s about time they dropped, no reason for diesel to be $4 dollars a gallon, $2 is more realistic.
Lester says
Im still trying to understand why Diesel fuel is so much more per gallon when it’s the byproduct left over after the make gasoline at the refinerys . Puzzling isn’t it , oh maybe it’s the the cost to ship it to the truck stops ???
David Dunne says
Ya all better give Ireland a wide Berth then …cause it costs over $7 a Gallon here when converted to Euro {€}…
JERRY COOK says
Answer for diesel being more expensive than gasoline is simple—Oil companies know that if diesel was not available, gasoline could/would not be delivered to gas stations. Therefore American public would destroy (think not–remember recent riots) gas stations or any facility that is involved with distribution of gasoline so the druggies can’t reach their dealers or law abiding citizens can’t get to grocery store for meat, milk, bread, and eggs.
Many people refuse to acknowledge the fact that EVERYTHING except the air they breathe is at one time or another delivered by a truck that uses diesel fuel so if an oil company only gets a mark-up of 1/2 cent per gallon on diesel, they make BILLIONS of dollars per year selling diesel.
Consider this: If you can put together $1,000,000.00 You can EASILY buy the land and erect a self-service fueling station (using credit cards only) that sells 1000 gallons of diesel per day at 1/2 cent per gallon above your cost for 350 days per year, your income for 1 year would be $175,000.
The total cost of buying the land and building the station would be completely paid off in 5.7 years.