Drivers at the beach in southern Sussex County no longer have to go out of their way to get the best deals on gasoline.
While the lowest costs at the pump can usually be found upstate or in the western part of the county, now towns like Rehoboth Beach and Fenwick Island are offering some of the best values in Delaware as prices begin to dip below $2.
"It's a few pennies" saved, said Mickey Boris last week as he fueled up for $2.09 a gallon at a Fenwick Citgo station. "It's never going to be where it was, but it's better than paying $3 a gallon."
Since the beginning of January, the average price for a gallon of regular gasoline in Delaware has fallen 19 cents, according to AAA Mid-Atlantic. Tuesday's average of $2.17 is six cents lower than last week, 20 cents lower than a month ago and 20 cents lower than a year ago.
Pennsylvania's average price per gallon is holding at $2.27 and Maryland at $2.20 while the national average is coming in a $2.16.
According to the Web site DelawareGasPrices.com, the cheapest gas in the state is going for $1.94 at the Rehoboth Beach Citgo station on the circle of Rehoboth Avenue, with nine other stations in the town and two Dewey Beach stations following -- all with prices under $2.09. Prices in the Bethany Beach area are holding steady around $2.15, which is still a relief for drivers who paid nearly a dollar more this summer at the same stations.
The reason consumers are now saving is that prices for crude oil, the main component in gasoline, have been falling rapidly over the past two weeks from above $60 per barrel to $53 a barrel as mild winter temperatures lead to a lower demand for heating oil, says AAA Mid-Atlantic spokeswoman Ela Voluck. In turn, costs at the gas pump are dropping slowly with beach towns first to reap the benefits.
Voluck says she's not sure exactly why prices are lower along the coast, but the rest of the state should be following suit shortly.
"I'm not sure why it's so much lower, though it could be seasonal. Also the demand is not as high as it would be in, say, Wilmington," Voluck said. "We do expect to see prices drop in the coming weeks. The pump prices just aren't dropping as fast as the crude oil prices."
The reason for inconsistent prices, according to AAA, is largely because gas stations are still in the process of trying to sell the rest of their current inventories, bought at higher prices earlier this month. Once that stock is gone, drivers should be able to fuel up for less.
"It has to do with competition too," Voluck says. "It's a matter of who drops their prices and by how much."
"We often see pump prices shoot up like a rocket and come down like a feather, and that is what we are seeing now," added Catherine L. Rossi, Manager of Public and Government Affairs for AAA Mid-Atlantic. "Pump prices are usually slow to catch up to oil prices, but if all factors remain the same, lower prices should be seen at gas stations across the state in a few weeks."
The key to lower pump prices is an oil price that remains near the current levels or moves even lower. Oil and gasoline inventories are strong, AAA says, and attempts by oil producing countries to scale back production and keep prices up do not appear to be working.
However, AAA warns consumers against getting too comfortable with lower costs. Regardless of the short-term situation, spring and summer driving seasons traditionally bring seasonal gas price increases because of the different summer gas blend, E-10 gasohol (a blend of 90 percent gasoline and 10 percent ethanol).
"Gas prices are so difficult to predict," Voluck says. "We do, over time, anticipate higher gas prices, so it's a good idea not to get too complacent.
"But, at the moment, for drivers, it's a welcome relief."
source: delmarvanow.com