Gasoline Price Update: A Nice Gallon Under $3

Note from dshort: I filled my Prius yesterday just south of Myrtle Beach at 2.97 a gallon. That was my first under $3 gas in many months.

Here is my weekly gasoline chart update fromDepartment of Energy data with an overlay of West Texas Crude (WTIC). Gasoline prices at the pump — both regular and premium — dropped six cents over the past week after dropping seven cents the week before. WTIC hit an intraday high above 100 but closed at 98.21. It is up 0.8% over the past week.

As I write this, GasBuddy.com shows only one state, Hawaii, with the average price of regular above $4.

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The price volatility in crude oil and gasoline have been clearly reflected in recent years in both the Consumer Price Index CPI and Personal Consumption Expenditures PCE. For additional perspective on how energy prices are factored into the CPI, see What Inflation Means to You: Inside the Consumer Price Index.

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The chart below offers a comparison of the broader aggregate category of energy inflation since 2000, based on categories within Consumer Price Index (commentary here).

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Doug Short Ph.d is the author of dshort.com.