U.S. gasoline prices at the pump will extend a decline after crude oil tumbled to a six-year low, said Trilby Lundberg, the president of Lundberg Survey Inc.
“Retail price cuts are in the cards” for gasoline, Lundberg said Sunday in a telephone interview. “It would take a powerful oil-price hike to reverse them.”
The average for regular gasoline at U.S. pumps fell 0.35 cent to $2.7073 a gallon in the two weeks ended Aug. 21, Camarillo, California-based Lundberg said Sunday. Her report is based on information from about 2,500 filling stations. The price is 77.12 cents lower than a year ago.
Motorists will get the benefit of lower crude, Lundberg said. On Aug. 21, West Texas Intermediate futures for October delivery dropped 87 cents, or 2.1 percent, to settle at $40.45 a barrel on the New York Mercantile Exchange, the lowest close since March 2009. The contract touched $39.86 during the session.
The highest price for gasoline in the lower 48 states among the markets surveyed was in Los Angeles at $3.60 a gallon, Lundberg said. The lowest was Charleston, South Carolina, where customers paid an average $2.10. Regular gasoline averaged $2.67 on Long Island, New York.
WTI fell 7.8 percent in the two weeks ended Aug. 21, and gasoline futures on the Nymex declined 4.8 percent to $1.5449 a gallon.
This year, the oil benchmark has slumped 24 percent, while gasoline futures climbed 7.6 percent.
(An earlier version of this story corrected the gasoline price in the headline.)