Gasoline prices are falling like a rock - update

Update: Since I posted this yesterday, the AAA Daily Fuel Gauge Report shows the average retail price for a gallon of regular unleaded gasoline has fallen another 4.4 cents to $3.247.

This means that gasoline has fallen over 20% from its peak on July 17, 2008.

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While everybody agonizes over the (seemingly) excruciatingly slow process of the big bank bailout, meanwhile consumers are (silently) reaping the benefits of the crude oil and wholesale gasoline "bailout" of speculators -- "bailout" as in the speculators are bailing out of their positions and the prices of crude oil and wholesale gasoline are falling like a rock. Crude oil fell almost $9 on Friday, with wholesale unleaded gasoline faiiling over 22 cents a gallon. Retail gasoline price declines have started to accelerate as well, with the AAA Daily Fuel Gauge Report price falling almost 6 cents today to $3.291.

November RBOB unleaded gasoline futures closed at $1.8070 on Friday, indicating that retail prices are headed for $2.40 to $2.45 within a few weeks, about 85 cents below the current price level.

The media is not giving these gasoline price declines much press, but all of this extra cash in the pockets of consumers will help to buoy consumer sentiment and domestic spending as well as boosting GDP by reducing the subtraction due to imports of crude oil. Businesses and government will benefit from the steep price declines as well.

-- Jack Krupansky