Tulsa World: Gas prices top '08 holiday

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Gas prices top '08 holiday
But with other costs down, travelers will make a lot of road trips this Thanksgiving.

Customers fill their cars with gas at QuikTrip on 46th Street and Peoria Avenue in Tulsa. JAMES GIBBARD / Tulsa World

By JOHN STANCAVAGE World Business Editor
Published: 11/25/2009 2:23 AM
Last Modified: 11/25/2009 4:47 AM

Travelers hitting the road for the Thanksgiving holiday will encounter pump prices that are sharply higher than in 2008.

The national average for a gallon of regular unleaded gasoline was $2.64 Tuesday, versus $1.91 at the same time last year.

In Tulsa, a common price for gasoline was $2.36, down a few pennies from Monday, but still 72 cents higher than 12 months ago, according to data from travel club AAA-Oklahoma.

"The price of gasoline this season is a reflection of what's happening with crude oil," said Chuck Mai, a spokesman for AAA and an observer of fuel prices for more than two decades.

"Investors have been hedging their bets in the face of the weak dollar — which is down 16 percent in the past 10 months — by buying oil."

As a result, even though energy supplies remain ample and demand is modest as the recession continues, the price of oil has shown considerable strength. On Tuesday, crude for December delivery fell $1.54 to settle at $76.02 a barrel on the New York Mercantile Exchange, but still was $15 higher than 12 months ago.

Despite higher fuel prices, AAA expects Thanksgiving driving to be up 1.4 percent nationally from 2008. In Oklahoma, holiday travel is expected to be even stronger — up 7.5 percent.

Travelers who stay within the state or don't roam too far will find some of the best fuel prices. Oklahoma's statewide average of $2.498 is the fifth-lowest in the country. Missouri, meanwhile, is the cheapest at $2.471 and Texas is fourth-lowest at $2.495, according to AAA.

In comparison, California's average is $2.932 and Alaska's is $3.396.

Mai said that the higher expected road traffic this year could be a reflection of renewed confidence in the economy.

"Perhaps the rebound has begun," the spokesman said.

He also said there likely is some pent-up demand from fewer trips during the summer and for Labor Day weekend as consumers coped with the downturn.

"People now are wanting to throw the kids in the car and drive to Grandma's house for Thanksgiving dinner."

Another factor boosting Thanksgiving travel, he said, is that while gasoline prices are up, other costs are down from last year.

"Accommodation costs at AAA two- and three-star-rated hotels are down 11 percent to 13 percent. That's significant," Mai noted. "And, car-rental fees are down 2 percent."

In addition, reduced capacity by major air carriers may be causing many people to opt for open roads rather than crowded airplanes, he said.

Looking ahead toward Christmas travel, it would be understandable if consumers felt some nostalgia for last year, at least as far as fuel budgets are concerned.

In 2008, oil prices dipped below $50 in December and gasoline prices that month fell below $1.40 — the lowest cost for fuel in the area since January 2004. The year-end prices were in stark contrast to the previous summer when oil soared above $140 a barrel and gasoline hit $4 a gallon.

Mai doesn't anticipate prices hitting such lows at the end of this year, but he said oil and gasoline prices could dip a little bit.

"That's possible, if we don't have a major supply disruption or some other crisis," Mai said.

States with the lowest gasoline prices

Dollars per gallon

Missouri....................... $2.471
South Carolina............ $2.483
Tennessee.................... $2.494
Texas............................. $2.495
Oklahoma ...................... $2.498
Georgia......................... $2.502
Mississippi .................. $2.504
New Jersey.................. $2.517
Wyoming..................... $2.518
Arkansas...................... $2.520

Source: AAA

John Stancavage 581-8314
john.stancavage@tulsaworld.com By JOHN STANCAVAGE World Business Editor

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Some reader comments for this story were copied from "Gasoline prices to take a bite out of Thanksgiving travelers," which was published on 11/24/2009.

	Report Comment my view, Sand Springs (11/24/2009 10:23:58 PM) It doesn't surprise me that gasoline in California is high. It has the third highest excess tax in the nation with New York and Hawaii being one and two. Alaska has the lowest at .08 per gallon but they have to import their motor fuel from the lower 48.
	Report Comment CrippledShark, San Antonio (11/25/2009 10:18:50 AM) No crap curly joe. This was newsworthy and they wonder why readership and subscriptions are down for newspapers. My view, you going to Cali? Be safe and Happy Turkey Day everyone - gobble gobble. Anyone remember the Reeves Boys Thanksgiving TV commercials?
	Report Comment FS, Broken Arrow (11/25/2009 12:26:09 PM) Thank you, Tulsa World, for letting us know the oil companies did as expected of them.
	Report Comment Jay of Tulsa, (11/25/2009 12:38:36 PM) FS...you know not of which you bable. . Leased a drilling rig lately?? Have inkling of a clue on what it takes to design/build one?? . How about what it takes to truck one to the drill site??? hmmm?? . This spike in prices are coming from our wonderful guv'ment..and morons on wall street..
	Report Comment Lance-a-lot, Tulsa (11/25/2009 3:39:52 PM) Oil is high because the dollar is so weak...and that you can blame on our government. The leaders in D.C. (both parties) have cheapened the U.S. currency by expanding deficits and spending money we don't have. A strong dollar should be problem #1 to get solved by our "leaders".
	Report Comment FS, Broken Arrow (11/27/2009 8:23:48 AM) Jay of Tulsa, (11/25/2009 12:38:36 PM) FS...you know not of which you bable. ... snip . . . Perhaps not - I do understand the weak dollar and value thing especially after the "capital injections" (Big Banking Giveaway) of last year. With your explaination in mind, I'm still puzzled as to how the dollar invariably tends to "weaken" around our country's recognized holidays, driving up the price of only one commodity. Being an oil company apologist, I'm sure you could explain (spin) this rather well.

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