On April 24, 2004 (when I was living in Ossining, New York) I bought gas and paid $1.939 per gallon. A couple of weeks later I bought gas again and the price had risen to $2.039 per gallon. This appears to have been the first time I had ever paid over $2 per gallon and I vaguely recall noting that at the time and wondering if I would ever pay less than $2 again. For a while this seemed doubtful as the price bounced around but stayed above $2 and trended higher. On July 26, 2008 I paid $4.499 per gallon. But then the financial crisis hit and demand plummeted driving the price ever lower. Five months later on December 26, 2008 I paid $1.979 per gallon. This was more or less the low and the price had moved back above $2 at my next fill up (although I did pay less the $2 per gallon a couple of times in April 2009 in New Jersey where the gas tax is about $.35 less per gallon than in New York). On July 2, 2014 (having moved to New Jersey) I paid $3.399 per gallon. But then with growing over supply of crude oil prices began to drop, slowly at first and then more rapidly. When I bought gas on Friday (January 9, 2015) I once again paid less than $2 ($1.959 per gallon to be exact). It remains to be seen how low the price will go and how long it will remain below $2.
The lower price is nice in isolation but probably isn't really in my overall best interest at this point. I purchased about 425 gallons of gas in 2014 paying an average price of about $3.20 per gallon. So if I buy the same amount in 2015 and pay an average price of $2 per gallon I will save about $510 or just less than $10 per week. This isn't too impressive and is much less than what I am likely to lose on my oil price sensitive investments if crude oil prices remain depressed.
See here for a graph of national gas average prices over the last 11 years. When I was living in Ossining I seem to have been paying about $.40 per gallon more than the national average whereas now in New Jersey I am paying about $.10 per gallon less.
1 hour ago