What is going on?

[rtry9a]

I just picked up another bifuel truck now that prices have finally returned to a reasonable level.

Planning the trip, I noticed that gasoline prices have fallen below $2.00/gal in many Northeastern states, and are now lower than many of the cng prices posted on our cng map, which have not changed. What gives? Cng is much cheaper to bring to market than the gasoline from $60 foreign oil. Thanks Boone

[barit1]

Re: What is going on?

What you are seeing is an excess of summer blend gasoline inventory. The oil cos. overproduced when gasoline would bring $4 and they were making a killing, and hoping the harvest would continue. Guess what? Now they're stuck with it and dumping it as fast as they can.

Winter blend will arrive soon and prices will be back up - maybe not $4, but probably over $3.

[CraziFuzzy]

Re: What is going on?

Also, the prices of natural gas have not dropped to the same degree as gasoline. This combined with the fact that a lot of the publicly run facilities only change prices periodically (monthly usually), and even then only by small portions, have exasperated the difference. My wife has gone back to driving her gasoline impala for work, as it is currently cheaper than the CNG expedition. This was not the case 5 months ago.