Gasoline futures closed yesterday on the NYMEX at 1.7352. You’ll recall that Sept. 28 they closed at 2.3393 (60 cents higher). This means that gasoline futures have declined over 25 percent in the last two and a half weeks. Yet the average retail price for regular unleaded on my commute has fallen only 14 cents per gallon ? to $2.88 this morning from the high of $3.02 Sept. 30, or a decline of only 4.6 percent.
Even if you factor out combined federal and state excise taxes on gasoline here ? 45.8 cents ? that decline is still only 5.4 percent. A 25 percent decline, taxes excluded, would yield retail prices of around $2.38. (Never thought I’d be begging for $2.38/gal. gasoline …)
