Can automobile fuel prices reach $1/gal, or even lower?

In My Humble Opinion (IMHO)
#1

Today, at a station near me, the price for regular was $1.55/gal.

As the price at the pump continues to drop, I naturally wonder how low it can go. What is a reasonable floor below which prices cannot fall? At some point it will no longer be profitable for US oil companies, won’t it? Or is it such that at even, say, 50 cents a gallon it is still wildly profitable?

Also, as electric and electric/gasoline hybrid vehicles, such as the Tesla, Leaf, Volt, Bolt, I3, and others become more prevalent, will they impact demand such that prices continue to plummet, or plummet faster?

I recently placed an order for a fully electric car so automobile fuel prices will become an issue of the past for me in a few months, but I have also begun to notice drops in my utility bill, which is great, but again, how low can it go?

#2

Are you talking about the price of gas, or how much consumers pay for it? Because state/federal taxes are almost a buck. I can’t see how it could really get below $1.00.

Heh. According to this gas will only be a dime. I’d like to know how they’re going to get it here and only charge 10 cents. But I’d like to buy a new gas guzzling pick up truck so I’d wish they’d hurry up!

#3

It was $1.32/gal yesterday in Flint. You can’t get water here to save your life but shit, if you like to drink gas, problem solves itself. :cool:

#4

I think can and will get below $1 per gallon. Looking forward to it, can spend less on gas and more on other things.

#5

62.9 cents per gallon in Washington for state and federal taxes. So, I don’t see the price ever hitting $1/gallon again here.

#6

It did drop below the magic number of $1 back during the Clinton admin IIRC, not sure if any additional taxes were added since then.

#7

Yeah sure, anything can happen. I’ve seen cost of refining as low as $0.20/gallon and as high as $1.50, so if you have low oil prices at the same time there is a glut in refining capacity. The problem is that the only time this generally happens is when there is a huge slowdown in economic activity. When oil prices are low the refining prices tend to spike a bit as the demand for gasoline increases.

Here are some stats from California.

http://energyalmanac.ca.gov/gasoline/margins/index.php

#8

I am sure they can, will they is another question entirely.

#9

Apparently are other factors in play for the price though.

According to this site, Michigan’s state gas tax is a bit higher than Virginia’s, but the gas here cost a lot more than 1.32 or 1.55. More like 1.90, so there are other factors that may determine final price.

I would say it is not going to get less than $1 in my section of VA.

#10

Damn, I’d be happy to just see them under $2 here. I’m in Oregon and all the stations I see are still over $2 barring a handful at 1.99.

#11

Kroger has $1.49 here.
Like a fool, I had just paid $1.51.:smack:

#12

Just dropped to $1.53/gal for regular here. I have to say I am amazed at the prices, and more so every day.

ETA, I’d be surprised to see $3 a gallon again. I think the demand is shrinking and will continue to do so.

#13

Average worldwide production cost of one barrel of crude oil fluctuates from $20 to $25. Within this, average per country could be as low as $6 for Saudi Arabia to $48 for UK.

#14

So, assuming that you have a 15-gallon tank, and you were almost empty before filling up, your foolishness cost you… thirty cents.

If only all foolishness were that cheap.

#15

It was a big news item that it fell below $1 for some places in Michigan. Pics made it all over Reddit.