An analyst with the Iowa Department of Natural Resources says refinery production has recovered from hurricanes Katrina and Rita and that’s allowed gasoline supplies to increase. Jennifer Moehlman says the increase in supply has led to a corresponding decrease in price.
She says prices have declined across the board since their last survey one month ago, with the most dramatic decline in diesel and gasoline. Moehlman says ethanol-blended gas was selling for an average of two-dollars and six cents a gallon across the state, while regular unleaded averaged two-dollars and 11 cents.
She says that’s a 46-cent drop for ethanol and diesel has dropped 58 cents. Moehlman says the market appears to be evening out at just under two dollars a gallon, but says there may be a bump as people head out for turkey.
She says prices may bump back up for the November Thanksgiving driving season. Moehlman says even with the drop, ethanol is selling at 12-percent higher than this time last year and regular unleaded 13-percent higher.