Baltimore-area average stands at $1.64/gallon A dramatic drop in the region’s gas prices caused retail costs in the Baltimore-Washington area to decrease by 2.5 percent from September to November.
In those two months, gas prices in the Baltimore-Washington region fell 39.5 percent, according to the Department of Labor’s Consumer Price Index.
In the last month, the average price for a gallon of regular gas in the Baltimore region continued its decline, decreasing 18.7 percent since the middle of November to $1.64 on Tuesday, according to AAA. The price has plummeted from a regional record high of $4.03 a gallon on June 19.
In an otherwise dreary economy, with home values declining and the stock market sinking, motorists can take some solace in the fact they’re no longer paying $50 to fill up their gas tank. AAA expects gas prices will continue to decline in December, as the price of crude oil continues to drop below $50 a barrel and demand at its lowest rate since the beginning of 2004, according to the Department of Energy.
“Gas prices are one economic bright spot for motorists right now, and we will enjoy lower gas prices yet,” said Ragina Averella, manager of public and government affairs for AAA-Mid-Atlantic. “Prices at the pump have not yet caught up with lower crude oil prices, so we can expect gas to cost even less in the days ahead.”
The decline led to a 14.8 percent drop in the region’s transportation costs and offset a 3 percent increase in apparel costs, a 0.8 percent increase in medical care and a 0.4 percent increase in other goods and services.
Other sectors that saw declines in the area were housing (0.9 percent), education and communication (0.3 percent), recreation (0.3 percent) and food and beverages (0.1 percent).
Cost decreases have not resulted in increased retail sales, as Maryland’s general fund sales tax receipts in October deceased about 7.5 percent from the same period last year, according to the Comptroller’s Office. Nationally, retail sales increased 0.6 percent in November from October but decreased by 2 percent from last year, according to the National Retail Federation. The data included Black Friday weekend sales.
The region’s energy index, which also reflects prices for gasoline, dropped 22.2 percent from September to November.
Across the country, the CPI decreased 1.9 percent in November, according to the Labor Department. The index is up 1.1 percent from November 2007.
