Long Island Gas Prices On The Move

November 30, 2007

(Long Island New York) Long Islanders took a big wage cut this week. It came at the gas pump, where prices rose to $3.55 a gallon.

The spike comes from speculation that the U.S. Federal Reserve will cut interest rates to boost the economy. According to the Web site Longislandgasprices.com, which relies on reports from motorists, prices for regular gasoline were as low as $3.12 a gallon at BJ’s in Farmingdale at Rte 110 & Daniel Street and as high as $3.55 just a few miles North at a Mobil Station on New York Avenue in Huntington.

Looking ahead into 2008, both crude prices and refinery constraints should ease somewhat, according to the Energy Information Administration (EIA). Today’s very high crude prices are expected to fall back to average close to $80 per barrel in 2008. Increased use of ethanol in gasoline should also add to U.S. gasoline supply in 2008. The Energy Information Administration is projecting that overall regular gasoline prices may average $2.97 per gallon in 2008, which is 18 cents per gallon higher than the 2007 average mainly due to higher crude prices, but lower than the $3.10 seen on November 26. Similarly, 2008 diesel prices are projected to average $3.09 per gallon, which is 23 cents per gallon higher than in 2007, but lower than the $3.44 reported by the Energy Information Administration (EIA), on November 26.

Despite the fact that these reports by EIA show leveling off in the coming year, Long Islanders need to realize that the biggest increases may be yet to come. As long as the United States keeps the region in turmoil with the war in Iraq and threats against Iran, oil prices will continue to rise, especially if we do delve into another war. Some experts predict that the price of oil could rise to $200.00 a barrel which could actually double the gas prices we’re seeing now. And according to CNN, President Bush on Thursday called on Congress to approve billions of dollars in additional funding for the wars in Iraq and Afghanistan before lawmakers leave for their Christmas break.

“Although crude oil prices have been highly volatile so far this week, making it difficult to predict the direction of markets in coming weeks, a significant decline in gasoline prices before Christmas appears unlikely,” the Energy Information Administration said in its weekly review of the oil market.

For some people, filling up means fewer presents under the tree. It’s a choice they must make this gift-giving season. Those hardest hit now include just about everyone - especially the elderly on fixed incomes.

Posted by News LI Editor · Edited by Brianna - Filed Under Business