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Gas prices decreasing
Published 12:00pm Wednesday, October 29, 2008Falling gas prices are offering some relief to local drivers in a time of economic uncertainty.
A gallon of unleaded sat at $2.29 at most Fergus Falls stations early Wednesday, a cent above the state average. A month ago that same gallon registered $3.48, AAA reports.
The cost of diesel is also down from last month, dropping from over $4 to a state average of $3.29 and $3.02 locally.
Staff with the City of Fergus Falls can feel the difference. Russ Bye, fleet and facilities manager, says the tankerload of fuel that arrived Monday cost significantly less than previous purchases.
“The price that was bid to us was a good dollar less (per gallon) than the last time,” he said.
The city orders fuel every two-and-a-half to three months, Bye said, depending in large part on the time of year and what kinds of machinery are in use.
Paul Beyer says he’s saved money when he fills his personal vehicle, but the high cost of diesel remains a burden for his business, Beyer Towing.
“We cannot recover our fuel costs on wrecker calls,” said Beyer, who has four wreckers that rely on diesel and another vehicle that runs on unleaded. “We’re basically swallowing that high cost of fuel.”
The vehicles that move goods and services across the country also require diesel, he said, and the fuel’s cost ultimately affects everyone.
Falling gas prices are in part a reflection of decreased demand. The Department of Transportation said Friday that Americans drove 5.6 percent less in August 2008 compared to the same month a year ago. That means 15 billion fewer miles and the largest ever year-to-year decline recorded in a single month.
And those prices are continuing to drop. Stations in Cambridge posted $2.04 early Wednesday, according to MinnesotaGasPrices.com, with the state’s most expensive stations still under $3. The Associated Press reports costs as low as $1.94 in parts of Missouri over the weekend.
