Falling gas prices have sparked something of a price war in Gainesville.
At the Wawa on Lee Highway, the price for regular unleaded was $1.97 per gallon Friday – a price not seen in the D.C. region in years. Motorists found the same price at the 7-Eleven on Webb Drive.
In all there were a total of five stations in the area that had gas below $2.
AAA Mid-Atlantic said this is the largest one month decline in history.
It is also the second largest one week price drop, coming on the heels of extraordinary decline in crude oil prices – down $5 a barrel since last week.
Prices in the Woodbridge area didn’t drop as far as they did in Gainesville, but they’re close. The area average there on Friday was $2.08.
“We expect gas prices will continue their tumble this month. This should translate to other consumables such as bread and mild which have a high transportation component attached to them,” AAA spokeswoman Martha Meade said, in a released statement.
Meade was right, as grocery chains like Wegmans announced they are lowering prices.
““We are lowering hundreds of prices in anticipation of our costs dropping in the future, and we intend to bring more prices down as soon as we can…During difficult times like these, it’s okay with us if we make a little less money,” Danny and Colleen Wegman, store owners, said yesterday in a statement to their employees.
The grocer says despite falling gas prices, the cost of soybeans, wheat, corn and overall food prices haven’t gone down. That’s because manufacturers locked in contracts with distributors when fuel prices were higher and fears were rampant they would continue to rise.
“Though the lower costs we expect in 2009 haven’t arrived yet, we think it’s necessary to lower prices now,” Jo Natale, director of media relations said.
Drivers also have a role to play in the reduction in fuel costs. Demand for gas has dropped nearly five percent nationwide. Miles travelled by motorists fell by more than five percent compared to the same time last year, Meade said.
The declines are expected to carry over to the weekend.
Meade said despite falling prices motorists have not started driving more.
She said the reason is likely a combined factor of the slumping economy and the fact so many have switched to using mass transit.
Meade did not say if the new lower gas prices are expected to last into the Thanksgiving Day holiday.
