Gasoline gurus say there’s a simple, seasonal reason prices at the pump have been plunging this month. In other words, credit the fall for the fall. “Lower demand and what we refer to as winter gasoline are really in the pilot’s seat here,” said Patrick DeHaan, an analyst with the website gasbuddy.com.
The average price of unleaded gasoline in the United States has dropped 6 cents a gallon during the past two weeks. That’s put prices at the lowest level since July. The average price statewide was about $3.35 Monday, according to GasBuddy. That was lower than the national average. And gas appeared to be even less expensive around Gastonia.
QuikTrip poised to open third store: It remains to be seen how falling prices will affect the strategy of a relative newcomer to the gas scene in Gastonia. QuikTrip’s third new store in Gastonia, on North Chester Street/U.S. 321, is slated to open in mid-October, said company spokesman Mike Thornbrugh.
The Oklahoma-based gas retailer raised eyebrows in late July upon opening its first two stores on Long Avenue and West Franklin Boulevard, selling fuel well below the local average price. It offered gas for $3.24 per gallon — about 20 cents cheaper than prices at neighboring stores at the time. Competitors soon relented by matching the prices. Analysts predicted it was QuikTrip’s way of making a name for itself and reeling in new customers, even if it meant taking a short-term loss at the pump.
Within a few weeks, QuikTrip had raised its price per gallon and no longer offered the lowest. Thornbrugh declined to specify what the company’s plan of attack might be when its third store opens. “We’re sure not going to tell our competition what our strategy will be when we open our store,” he said. “We’re going to do what we’re going to do, and what everybody else does is their business.”
Thornbrugh only promised the company will continue to be “highly competitive” in its pricing. QuikTrip’s foray here has been part of a larger expansion into the North and South Carolina markets in the last two years. Thornbrugh said supply and demand, acts of Congress and world events can swing the trend of gasoline prices drastically in just a short time.
“It’s the most erratic commodity I know,” he said. “Gas and crude oil trades 24 hours a day and is susceptible to all kinds of wild swings, up and down.”
Syria takes a backseat, for now: GasBuddy.com is among those forecasting even cheaper prices on the horizon. Then again, the volatile nature of the gas market means no prediction is golden. Just over three weeks ago, industry experts warned drivers not to get too comfortable with the low gas prices of Labor Day weekend. They predicted concerns about unrest in Syria could contribute to surges in oil and petroleum costs by the second week of September.
Fears about that potential price tsunami have passed, DeHaan said. “The situation in Syria is now taking a backseat to what’s going on with the seasons,” he said. “It’s really all about the fall and winter.” Prices historically fall in autumn as demand drops with the temperature, DeHaan said.
“That’s not to say prices will continue sliding all fall and winter,” he said. “If things flare up in Syria again, that could add upward pressure.”
You can reach Michael Barrett at 704-869-1826 or twitter.com/GazetteMike.