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Gas prices lower, but it's not expected to last

Posted October 01, 2007 11:00 pm

Tim Landis

Springfield drivers have been paying some of the highest, oops, make that lowest, gasoline prices in the state.

Local motorists accustomed to believing the former have enjoyed the latter for at least a few days this week with pump prices falling to as low as $2.56 a gallon Tuesday for regular, self-served unleaded.

"I nearly fell out of bed. It's the cheapest it's been in a long time," is how rural Springfield resident Albert Hock described his reaction to a steady decline in local gasoline prices that began late last week.

Hock said he also is certain a return to $3 a gallon is never far away.

"They'll go up eventually. It's going to be like a seesaw," he said.

Gas-tracking Web sites from AAA Motor Club to gasbuddy.com put Springfield prices among the lowest in the state Tuesday. In fact, Springfield and Decatur took up 11 of the 16 cheapest markets on the gasbuddy.com site. Some Decatur stations were selling at $2.55 a gallon.

Cheaper is also relative. According to AAA, self-serve, regular unleaded in Springfield averaged $2.12 a gallon a year ago.

Even the experts have been a little baffled by the local drop in prices.

"I don't know what's driving it, and it can't last," said Bill Fleischli, executive director of the Illinois Petroleum Marketers Association. The Springfield-based association represents service stations and convenience stores statewide.

"My guess is it would be the big-box guys driving it … that's usually the way it is," said Fleischli, referring to the Wal-Mart and Meijer superstores. Both chains have convenience-store partnerships in Springfield.

Illinois Petroleum Council executive director Dave Sykuta said fall refinery capacity also has caught up with demand.

"Supplies look good. Demand is still strong, but it's not what it was. That'll push prices down every time," he said.

Small-business owner Mike Monseur of Springfield also welcomed lower prices, though he, too, questioned how long they'll last.

"We can always tell when gas prices go up. Overall, the business just slows down," said Monseur, who co-owns with John Leskovisek eight Godfather's Pizza outlets in Springfield, Decatur, Chatham and Auburn.

Monseur said, not only do delivery costs go up, suppliers to the business often tack on fuel surcharges. He also said it's a sign of the times that $2.56 a gallon is considered a break from high prices.

"It wasn't that long ago, it was $1.99 a gallon. The fuel industry has really gotten us use to thinking $2.60 is easier," he said.

Tim Landis can be reached at (217) 788-1536 or tim.landis@sj-r.com.

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