{"id":715,"date":"2011-08-12T15:03:59","date_gmt":"2011-08-12T19:03:59","guid":{"rendered":"http:\/\/stateimpact.npr.org\/new-hampshire\/?p=715"},"modified":"2011-08-15T17:49:49","modified_gmt":"2011-08-15T21:49:49","slug":"price-of-crude-down-about-20-percent-price-of-gas-not-so-much","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/new-hampshire\/2011\/08\/12\/price-of-crude-down-about-20-percent-price-of-gas-not-so-much\/","title":{"rendered":"Price Of Crude Down About 20 Percent. Price Of Gas…? Not So Much."},"content":{"rendered":"

Here’s an interesting take on Granite State gas prices\u00a0from the <\/a>New Hampshire Business Review<\/a>.<\/em><\/p>\n

\u00a0<\/p>\n

\"\"<\/a>

Philippe Huguen \/ AFP\/Getty Images<\/p>

After Labor Day, could we see the triumphant return of gas prices below $3.50?<\/p><\/div>\n

“The cost of a barrel of crude was $81 on Wednesday, about a 20 percent decrease from a couple of months ago. The fall in price is due in large part to global economic uncertainty stemming in part from the U.S. credit downgrade.<\/p>\n

But Dr. Massood Samii, chair of the international business department at Southern New Hampshire University, said, ‘I don’t expect it to go much further down. Barring any major political upheaval, $80 to $90 seems to be a reasonable target, and that should lead to some decline in gasoline prices.'”<\/p><\/blockquote>\n

\u00a0So why wouldn’t we see a proportionate decline in gas prices as the price of crude goes down?<\/p>\n

“The cost of crude oil accounts for about one-third of the cost of gasoline at the pump, he said. The other two-thirds are a combination of factors – taxes, transportation and refinery costs, and profits taken at every step of the value chain, from wholesaler to distributor to gas station.<\/p>\n

For the most part, those costs are fixed, so a decline in the price of crude oil only decreases the price of gas by a fraction.<\/p>\n

In fact, by the time gasoline arrives at the gas station, wholesalers pretty much dictate the price that retailers charge, he said. Most gas stations make only a ‘minimal’ profit margin – a few cents on each gallon sold, he said.”<\/p><\/blockquote>\n

The NHBR also quotes Samii as saying we’ll probably see gas prices in New Hampshire fall below $3.50 sometime after Labor Day, when summer winds-down and people start to lay off the heavy-duty driving.<\/p>\n","protected":false},"excerpt":{"rendered":"

Here’s an interesting take on Granite State gas prices\u00a0from the New Hampshire Business Review. \u00a0 “The cost of a barrel of crude was $81 on Wednesday, about a 20 percent decrease from a couple of months ago. The fall in price is due in large part to global economic uncertainty stemming in part from the […]<\/p>\n","protected":false},"author":28,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[51],"tags":[127,128],"acf":[],"_links":{"self":[{"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/posts\/715"}],"collection":[{"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/users\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/comments?post=715"}],"version-history":[{"count":5,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/posts\/715\/revisions"}],"predecessor-version":[{"id":764,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/posts\/715\/revisions\/764"}],"wp:attachment":[{"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/media?parent=715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/categories?post=715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/tags?post=715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}