European Gasoline Imports Keep U.S. Prices Stable
Increased gasoline imports from Europe are keeping U.S. gas prices stable despite worries about the possibility of war with Iraq, the Wall Street Journal reported today (Oct. 28).
European refiners can export gas to the U.S. because they are producing a surplus as a result of European motorists’ preference for diesel engine-powered automobiles, the Journal reported.
The demand for gasoline in the U.S. is up nearly 3% this year, or about 9 million barrels a day, while it is down 2% in Europe. That is because diesel engine units account for half of all cars driven by the French, but less than 1% of all cars driven by Americans.
Tax incentives are encouraging the sale of diesel engine cars in Europe. Additionally, diesel get better fuel mileage, provide more power and create fewer greenhouse gases, the Journal reported.
Meanwhile, in Southern California, a key RV retail market, the average price of self-serve regular unleaded gasoline declined last week, according to the Automobile Club of Southern California.
As of Friday (Oct. 25), the average price for self-serve regular unleaded in the Los Angeles-Long Beach metro area was $1.526 per gallon, down 1.9 cents a gallon from a week earlier, the Auto Club reported.
Here is a list of the average price for self-service unleaded in several other metropolitan areas in the Southwest as of last Friday:
• $1.60 a gallon in San Diego, down 1.5 cents a gallon from a week earlier.
• $1.615 a gallon in Santa Barbara/Santa Maria/Lompoc, Calif., down 0.6 cents a gallon from a week earlier.
• $1.439 a gallon in Las Vegas, down 1.2 cents a gallon from a week earlier.
• $1.372 a gallon in Phoenix/Mesa, Ariz., down 0.8 cents a gallon from a week earlier.