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FRI., NOV 21, 2008 - 6:29 PM
Fuel prices below $2 for first time since early 2005
By BARRY ADAMS
608-252-6148

The trip to deer camp this weekend will be less expensive than it was last year.

Or in 2006, or in 2005.

Wisconsin's statewide average for a gallon of gasoline was $1.969 a gallon Friday, marking the first time since early 2005 that the price of fuel has been below $2 a gallon, according to AAA Wisconsin.

The price comes after a summer in which gas topped $4 a gallon and on the day that thousands of deer hunters hit the road for Saturday's opening of the traditional gun-deer season.

"Gas prices are really tied to the price of crude oil, and until crude stabilizes, who knows how low prices can go?" said Erin Roth, executive director of the Wisconsin Petroleum Council.

Friday's statewide average price per gallon dropped nearly four cents from Thursday and is 87 cents less than what it was last month at this time. Compared to a year ago, Friday's price was $1.17 less per gallon, marking a saving of $17.55 on a 15-gallon fill-up.

That equates to a 12-pack of beer and about a pound of beef jerky at Bushy's Meat Market in Arcadia, in Trempealeau County, which is a hotbed for deer hunting in western Wisconsin.

"Business is good here," said Randy "Bushy" Symicek, who has owned the more than 100-year-old meat market for the last five years. "People will spend a little more money but people are still going to be leery on what they spend their money on and how much they spend."

The Milwaukee area had the lowest average gas price per gallon at $1.935, according to AAA, while the Madison area's average was $1.964.

Madisongasprices.com reported Friday that 15 stations in the Madison area had prices at $1.89 or less with the Citgo, 3111 Parmenter St. in Middleton, selling gas for $1.87 a gallon.

AAA on Tuesday predicted a slight decrease in travel for next week's Thanksgiving holiday, but spokesman Larry Kamholz said the low prices could inspire more people to travel as gas prices continue to fall.

"Once we get to the holiday seasons, (prices) could level off or increase a little because of demand, but once we get past the holidays it could start dropping, but not at the rate we've seen," Kamholz said.

The price of diesel fuel also has dropped, going from $3.570 a month ago to $2.848 a gallon on Friday, AAA said. E85 has also dropped in price but not as fast as regular gasoline.

But the price spread between E85 and regular gas has shrunk from about 22 percent in mid-October to 12.8 percent Friday.

"I'm certain that is a concern for retailers," said Michelle Kautz, deputy director of the National Ethanol Vehicle Coalition in Jefferson City, Mo. "The cost of E85 must be lower than the cost of gasoline because of its lower mileage, at least 15 to 20 percent lower. Since the gasoline prices are so low, many retailers are having a difficult time offsetting this cost."

But it's also getting cheaper to fly for local pilots and business executives who use private planes and jets. Jet A fuel was going for $4.49 per gallon, down $1.26 from it's June price, said Krys Brown of Watertown-based Wisconsin Aviation.

At the Middleton Airport, self-serve 100 low lead fuel, used by small planes, was selling for $4 a gallon, compared to $5.40 in June.

"On flight training, that saves our students about $14 dollars an hour on our most popular aircraft," said Richard Morey, who manages the airport and owns Morey Airplane Co. "So that has been a very positive thing for us."


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