Archive for Thursday, July 4, 2013

Lawrence drivers, at home or hitting the road, benefit from drop in gas prices

July 4, 2013


Gasoline prices dipped below $3.33 this week in Lawrence, lower than they had been in months. Travelers are also likely to find lower prices elsewhere in the country, as the national average price of gas has declined for three weeks this summer.

Gasoline prices dipped below $3.33 this week in Lawrence, lower than they had been in months. Travelers are also likely to find lower prices elsewhere in the country, as the national average price of gas has declined for three weeks this summer.

Gasoline prices are on a summer slide, giving Lawrence drivers a break as they set out on road trips and vacations this Fourth of July weekend.

At most Lawrence gas stations, prices are lower than they have been in months, and travelers will likely find prices down elsewhere too. The national average for a gallon of regular fell for three weeks straight going into July, and is now below $3.50 for the first time since February. Prices are even lower in Douglas County and across the state, and Lawrence is doing better than most, with the price of a gallon of regular dropping below $3.33 this week.

The reason: the price of crude oil has been fairly stable, and refineries are turning out more gasoline after finishing springtime maintenance, according to an Associated Press report. Experts say the drop may be interrupted temporarily after oil prices spiked Wednesday because of fears that turmoil in Egypt could disrupt the flow of crude oil in the Mideast. But most analysts don’t expect a big increase at the pump while global oil supplies remain steady and U.S. refineries are producing a lot of gas.

A Midwest rollercoaster

Norman Pitts, of Lawrence, returned this week from a fishing trip in Missouri and found gas at $3.31 a gallon at a Dillons gas station at 3000 W. Sixth St. He said he noticed the drop from the the last time he filled up in town, three weeks ago, and paid $3.59. Other stations in Lawrence posted gas at $3.29, and it will make a big difference to Pitts if the prices stay low, he said.

“I spend a lot on gas,” Pitts said. “We travel quite a bit, this summer especially.”

Elsewhere in the U.S., the slide has been gradual. But it has been more of a roller-coaster ride in the Midwest, where prices were higher early last month because of refinery maintenance work and a fire at a Michigan refinery. Since then, prices have plunged as the refineries have ramped back up. The average price of a gallon in Kansas was $3.35 today, 34 cents below the $3.69 average a month ago, when prices spiked, according to, a website that tracks gasoline prices.

Whether the low prices will hold isn’t certain, experts say. Oil prices shot up Wednesday above $101 per barrel, the highest since May 2012, as the crisis in Egypt deepened. Egypt is not a major oil producer but controls the Suez Canal, a major shipping lane for Middle Eastern crude.

While analysts are not expecting a resulting surge in gasoline prices, they could rise quickly if the Mideast unrest does disrupt oil supplies. Gas could also climb if a hurricane threatens the heart of the refining industry along the Gulf Coast.

Tom Kloza, chief oil analyst at, predicted the national average will hover between $3.30 and $3.60 for the rest of the summer. That would be somewhat lower than the last two summers, when gasoline prices spent part of the season above $3.70 per gallon.

A volatile market

But gas prices have seen better summers, too. So far, this year’s early summer decline, while welcome, is smaller than the seasonal drops of the past two years, when gas prices also fell between Memorial Day and Independence Day. Across Kansas, gasoline is five cents more expensive, on average, than it was last year at this time.

Gas prices typically rise in early spring when refineries perform maintenance and switch from making winter gasoline blends to the more complex summer blends required for clean-air rules. When the nation’s refineries aren’t operating at full strength, supplies drop and prices rise.

“When refineries go down it can create immediate and severe havoc,” said Kloza, the analyst. “It’s a very shallow distribution system, quick to fill and quick to empty.”

That’s what happened in the Midwest earlier this year. A fire broke out at a Marathon refinery in Detroit in late April while maintenance was underway at an Exxon Mobil refinery in Joliet, Ill., and a BP refinery in Whiting, Ind. Prices in Kansas shot up, as they did elsewhere, reaching $3.71 for a gallon of regular in Douglas County. By July, gas was back down to $3.51 and still dropping.

Regional spikes and plunges are likely to happen more often in coming years, analysts say. The number of U.S. refineries has shrunk by a quarter since 1993 to 143, but the nation’s refining capacity has grown 18 percent since then. The remaining refineries are getting bigger, so if one goes down, it’s a bigger shock to the system.

Gasoline taxes account for the biggest difference in pump prices for U.S. drivers, according to the American Petroleum Institute, the industry’s chief lobbying group. Combined local, state, and federal taxes on gas in Kansas total more than 43 cents per gallon, greater than some neighboring states, including Missouri, Oklahoma, and Colorado.

For his part, Roy Halverstadt, 71, of Lawrence, wasn’t impressed today with the $3.32 price per gallon at a Kwik Shop gas station at 1420 Kasold Dr. Just back from a visit to family members out of state last week, Halverstadt said he paid less elsewhere: $3.19 for a gallon of gas in Dayton, Ohio and $3.23 near St.Louis, Mo.

He also was pessimistic about the gas prices staying low.

“You can kiss this goodbye,” Halverstadt said. “It’s going back up, no doubt about it.”

The Associated Press contributed to this story.


Jayhawker07 4 years, 11 months ago

Gas prices are now planned and selected by our world leaders. Just pay as you go. We also have options with the fuel that we choose. Fuel that is subsidized from our taxes which provides lower prices and lower fuel miles or pay for oil not from locals. Why the heck are we still dependent on foreign oil. Oil just shot up because some of our oil is from Egypt. Please! We have so many resourses within our land and waters. So, how many rigs are in the gulf? To me that is our oil. And I will fight for it. We are so getting screwed. This is the same mindset that has allowed the City of Lawrence to fund the FritZel fund to suck off our nipple. Our local government acts just like our federal governement. Corupt liers and theives. Don't think they will not take your guns away, they will in due time. I do not like where our rights and lives are heading.

Currahee 4 years, 11 months ago

This has nothing to do with world leaders. There is a multitude of factors playing into this. China and India have been consuming more oil to fuel their industrial growth. There is indication of potential manipulation in the price of oil (shocker right?) ( ... Oil has been harder to find with no incentive to look for more oil sources. That is, until the energy crisis in 2008 which had the domestic oil industry scrambling for domestic sources. A lot of US/Canada oil production is now from either shale oil (which requires fracking to extract) or tar sands and is not as simple as sticking a straw in the ground. Production this year has risen by 14% but gas still remains high due to refineries shutting down. Go figure, if it isn't one problem, then it's another. While I won't go too far to the conspiracy end... it is rather convenient that refiners are closing, which is artificially keeping gas prices abnormally high for most months of the year.

elliottaw 4 years, 11 months ago

Mean while oil companies are still recording quarterly profits over $25 billion, keep thinking t is a lack or oil while they just laugh to the bank

tomatogrower 4 years, 11 months ago

And they get tax subsidies too. It's just a typical drug dealer. They have us hooked on oil, and they can manipulate us anyway they want.

tomatogrower 4 years, 11 months ago

Our dependency on foreign oil has dropped drastically since it reached it's peak in 2005, but I'm sure FOX would never report this, so you probably didn't know. Domestic oil production has increased. Our oil producers have recently been asking to export our oil, and I'm sure free market conservatives like you feel like they should be able to do that, because they are a corporation and apparently a human being. We don't get much foreign oil from Egypt We get it mostly from Saudi Arabia. And we get a lot of our foreign oil from Canada, who are still our friends, but that won't stop the oil companies from pushing up the price and making an even bigger profit from the turmoil in Egypt. What kind of car do you drive? Hopefully not a gas guzzler. I suppose you would like the government to do something about those oil companies who have us addicted to their product, but that doesn't line up with your "conservative" values and you would be thrown out of the GOP. And, no they aren't coming to get your guns. Chill.

Jayhawker07 4 years, 11 months ago

Sorry to say it to you the wrong way. I guess saying world leaders mislead you. World leaders are put into office to convey and protect the interests of those who put them there. Should have said The World Bank and there shareholders. Thanks for the info, just inforces what we are up against. You do know it is all about the dollar or should I say Oil Dollars. What would happen if oil was not traded on the open market in dollars?

tomatogrower 4 years, 11 months ago

We could nationalize the oil, but then everyone would be up in arms, wouldn't they? We just need to try and use less and convince the emerging economies of China and India to try and conserve. You would think the people of China would already be upset by the pollution.

jesse499 4 years, 11 months ago

Lawrence is still higher priced then towns around what's that tell you when their 15 cents cheaper this morning in Topeka and oh I forgot we were told the reason we are higher is we are on KC pricing their 20 cents cheaper .

Jean Robart 4 years, 11 months ago

Reading your post is painful with the misspellings and use of wrong "soundalikes"

Charles L. Bloss, Jr. 4 years, 11 months ago

We have been screwed for so long, we welcome a drop in price, still over $ 3 a gallon as something to be happy about. I guess we can see the oil company's plan working. They are making millions off of the monopoly on a product we must have, and when they lower it a few cents, yet still over $ 3 a gallon, we are thankful for that?

tomatogrower 4 years, 11 months ago

They also periodically raise the price until we start to squeal, then they lower, but not as low as before, and we breath a sigh of relieve. They are trying to get away with whatever they can.

rtwngr 4 years, 11 months ago

Wrong. Wrong. Wrong. The reason gasoline prices are where they are is a direct result of remaning weakness of the U.S. economy, high unemployment, minimal growth in GDP, high debt, quantitative easing, and no prospect of it changing anytime soon. All of this weakens the value of the dollar which means it takes more dollars to buy gasoline. This is the new norm courtesy of the Obama administration. Last one to leave, turn out the lights.

elliottaw 4 years, 11 months ago

nice try but it is going up all around the world and as much as we like to think its true the US doesn't really have that impact on the whole world.

Phoghorn 4 years, 11 months ago

On Wednesday, I suggested to LJW that they might see a reduction in clicks due to the annoying surveys on their website. My comment got disapeardedededed. I am just trying to give some honest feedback here. I have always enjoyed reading this site, but the LJW is not the only source of news in NE Kansas. The most user friendly sites are going to be the ones that get the most re-clicks.

elliottaw 4 years, 11 months ago

its a free market they can charge what they want, the government does not set the price

JHawkInLA 4 years, 11 months ago

$3.85 in Los Angeles. Anyone in Lawrence want to trade? Our State gas tax just went up 3.5 cents a gallon because we aren't buying enough gasoline. There is plenty of oil in the ground, but we can't drill much of it, because the same legislators who raised the tax, won't allow it.

patkindle 4 years, 11 months ago

folks whined about the price of gas when it was 19.9 cents..... some of them nearly died when it hit one dollar...... it is fine for the govt to make more money per gallon than the oil companies, unless you own stock in oil companies, you hate them worse than our corrupt govt. when gas really gets too expensive technology will take over, so if you really hate buying gas, stay home on weekends, and don't drive to kc or Topeka

jesse499 4 years, 11 months ago

The simple fact is the reason gas prices won't go down much is the feds and the states would lose millions in taxes.

tomatogrower 4 years, 11 months ago

So you don't mind the oil companies making all that money? Really? Record profits every year.

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