Long Island gas prices fall 5 cents

Gas prices continue to fall on Long Island, dropping by another 5 cents a gallon in the week ended Wednesday, the AAA said, as demand weakened with the end of the summer driving season and cheaper winter-grade gasolines began entering the system.

Regular averaged $3.917 a gallon Wednesday, the AAA said -- still over a dollar a gallon more than at this time last year.

Andy Lipow, president of Houston consulting firm Lipow Oil Associates Llc, says he thinks prices could fall another 10 cents a gallon nationally in coming weeks. "Gas stations are receiving winter-grade gasoline, and we are seeing inventories of gasoline beginning to rise substantially as we move beyond the summer driving season," he said. "The combination of those two factors should be putting downward pressure on retail prices."

Crude oil futures fell Wednesday, with the U.S. benchmark grade settling $1 lower at $85.92 a barrel. Lipow said traders were reacting to downgrades by Moody's Investors Service of the debt ratings of the Bank of America, Citigroup and Wells Fargo and apparently had concluded the Federal Reserve's actions announced Wednesday to boost the economy by buying long-term Treasury bonds and selling short-term ones would be insufficient.

Wednesday, longislandgas prices.com, which is based on motorist reports, said regular was selling for as low as $3.45 a gallon at a station in Bay Shore and as high as $4.59 a gallon at a total of six Mobil and Gulf stations in both counties.

American drivers bought 1.1 percent less gasoline last week than a year earlier, according to to the weekly SpendingPulse survey by MasterCard Advisors.

Home heating oil held steady in the week ended Monday, averaging $3.98 a gallon at full-service dealers on Long Island, the state Energy Research and Development Authority said. Heating oil is almost $1 a gallon costlier than last year at this time.

Lipow said he expected fuel prices to remain stable in coming weeks. "Supplies are significantly lower than at this time last year but are adequate for a normal winter," he said.

-- With Bloomberg News
 

Prices on Long Island

GALLON OF GASOLINE

Yesterday $3.917

Week ago $3.967

Year ago $2.840

GALLON OF HEATING OIL

Sept. 19 $3.989

Sept. 12 $3.987

Year ago $3.007

Sources: AAA, New york state energy research and development authority