The Biz Buzz

Get the most up-to-date news, insights and analysis of Tacoma, Pierce County and South Puget Sound business.

NOTICE: The Biz Buzz has moved.

With the launch of our new website, we've moved The Biz Buzz.
Visit the new section.

Tacoma gas price drops below national average for the first time in five years

Post by John Gillie / The News Tribune on Nov. 12, 2012 at 5:18 pm |
November 12, 2012 5:21 pm

The rapidly falling gasoline prices in the South Sound today dropped below the national average for the first time in five years.

That’s quite an achievement considering that Washington has one of the highest gasoline taxes in the country and that the region’s refineries have no pipeline connections to Midwest and Gulf Coast refineries.

According to The News Tribune’s Gas Deal Finder, the average price in the Tacoma area for a gallon of unleaded regular was $3.437 late Monday afternoon.

That price is nearly 66 cents less than the average price just a month ago.

The national average price Monday was $3.469.

Credit the relative cheapness of local gas to two facts, say energy experts. The wellhead price of crude in the upper Midwest has fallen steeply because of high production, and the storm-caused shortage of gasoline along the East Coast has raised prices there affecting the national average.

Tim Hamilton, executive director of the Automotive United Trades Organization, said the glut of oil is forcing prices downward. AUTO is a Northwest service station owners’ organization.

That’s a good thing for his members, he said, because it allows them to keep their margins up while still providing relative bargain prices for consumers.

Hamilton said he thinks local prices now are close to bottoming out.

Some distributors, he said, have already begun modest price increases.

The higher East Coast prices are keeping national averages from declining as rapidly as those locally.

In New York, for instance, the average price of a gallon of gas is $3.967, the third highest in the country after Hawaii and Alaska.

Washington’s state average, $3.568 a gallon, ranks it 17th on the list of state averages from high to low. In recent months, Washington has usually been among the top five or six.

South Sound prices are lower than the state average in part because of continuing local gas wars in Bonney Lake and Lakewood.

Price leader Fred Meyer is selling gas at its Bonney Lake store for $3.19 a gallon. That’s eights cents lower than it was at that station just 10 days ago. Arco in Bonney Lake is selling gas for $3.22 a gallon. The Bonney Lake Safeway is just a cent higher.

In Lakewood, Arco is the lowest with a $3.22 price. A 76 station in the same neighborhood is selling gas for $3.23 a gallon.

Two stations in Pierce County were still over $4 a gallon Monday. Automotive Service Center at 3637 Portland Ave. was reportedly selling gas for $4.29 a gallon, according to TacomaGasPrices.com. The Parkland Gas ‘n Go at 11002 Pacific Ave. was selling regular for $4.13 a gallon.

In Olympia, the Arco station at 7291 Martin Way E. was the lowest price retailer with gas available for $3.29 a gallon.

*
The News Tribune now uses Facebook commenting on selected blogs. See editor's column for more details. Commenters are expected to abide by terms of service for Facebook as well as commenting rules for thenewstribune.com. Report violators to webmaster@thenewstribune.com.