ย The price of unleaded regular gas is $3.019 at the Burchmart in Leonardtown. According to www.marylandgasprices.com the statewide average gas price is $3.035, up from $2.997 a week ago, $2.669 a month ago, and $2.173 a year ago.
ย Within the County gas can still be found for under $3. Statewide, the lowest price is $2.89 in Joppatowne in Harford County; the highest price is $3.51 in Cabin John in Montgomery County.
ย Nationwide the average price is more than $3.10. According to AAA Maryland is relatively low, ranking 37th among the 50 states and Washington DC in terms of average gas prices for unleaded regular, see www.fuelgaugereport.com/sbsavg.asp. The top 3 most expensive states (not surprisingly) are California at $3.416, Hawaii at $3.354, and Washington State at $3.262. As many know the West coast is synonymous with high gas prices.
ย The cheapest 3 states are New Jersey at $2.913 followed closely by Texas and South Carolina both at $2.973. Interestingly, New Jersey is one of only 2 states (the other is Oregon) that prohibits self-service. That tells you that there are many other factors involved in gas pricing. These factors include differences in state gas excise tax rates (which the Maryland legislature will most likely increase), location to refineries and storage facilities, transportation and delivery costs, and of course competition.
ย We’ve seen $3 gas before. The aftermath of Hurricane Katrina a few years ago saw local prices spike to about $3.40 while other parts of the country experienced $4, $5, $6 per gallon prices. With time these prices settled back. What’s different this time is that this is a steady upward trend driven primarily by rising crude oil prices. Unless the recent run-up in oil prices to $90+ per barrel turns around we have possibly reached a new threshold.
ย We hit the $2 threshold earlier this decade. Many of us remember the $1 threshold from the 1970s oil crisis. As recently as the late 1990s sub-$1 prices helped catalyze the comeback of the V8 and larger vehicles including a new designation called SUV. The popularity of the Hummer epitomized that era. But a climb back up the past 5 years has brought about the era of the hybrid vehicle, embodied in the popularity of the Prius.
ย What does all this mean? In the short run we run around in search for cheap gas. So much for brand loyalty. In the longer run we think harder about driving behavior. What we drive has already been discussed. But the average price of cars is also up (almost as much as gasoline) so switching from a 15mpg vehicle to one that gets 30-40mpg is not that easy. So we choose how much we drive or whether we share the driving or whether we find an alternative like public transit, bicycle or by foot, or even working from home if possible. At first glance these may not seem feasible options but increasingly they are being considered.
ย I bring up $3 gas simply as an economic indicator. It may be fleeting but for now it seems like something we should pay serious attention to. Just as $1, then $2 gas changed the economic landscape in so many ways, so will $3 gas. The old $1.63 gas sign at the corner of Great Mills and Chancellor’s Run Roads is a daily reminder of a time not that long ago. The Sheetz and WaWa stores along Great Mills Road serve as bookends to the two vacant shops at the corner of Chancellor’s Run Road. Rising gas prices played a role in the convenience store market changes along
