GAS PRICE DIPS UNDER $1 MARK

CAPE GIRARDEAU -- Gasoline prices in Cape Girardeau fell to pre-Persian Gulf crisis levels Monday, with some stations dropping prices to 99.9 cents a gallon.

It has been more than six months since gasoline prices were under a dollar. On Aug. 1, 1990, gasoline prices here were 99.9 cents a gallon. A day later, following Iraq's invasion of Kuwait, prices increased here, and in two weeks, pump prices for regular unleaded gasoline were at $1.19.9.

Area gasoline prices peaked at $1.29.9 on Aug. 24, and again on Jan. 17 (for one day) following the U.S. bombing raids on Iraq and Kuwait.

Since then, prices have tapered off, according to area gasoline dealers.

By last weekend, prices were down to $1.03.9.

Nationwide, average gasoline prices dropped about a nickel over the past weeks, as barrel prices dipped to $21.22 by Friday and were still under the $22 mark Monday.

The 99.9-cent price here is well under the national average. A survey of more than 1,300 stations revealed that the average price of self-service, regular unleaded gasoline, is $1.12 a gallon.

"The wholesale prices have been easing down in a steady drop," said Bob Blank of Bi-State Co. here. He predicts the price levels will continue the downward trend in the next 30 to 60 days as surpluses mount.

Pete Rhodes, who operates two Stop & Shop operations and one Cutmart, agrees that the downward trend could continue.

"I'm at $103.9 today," said Rhodes Monday afternoon. "I'll have to follow suit to 99.9 Tuesday."

Rhodes said area prices had dropped six to seven cents a gallon over the past 10 days.

Barrel prices a week ago were about $26. The Friday and Monday barrel prices were under $22.

"People are not using as much gasoline this time of year," he added. "That, and the fact that production has been sufficient to meet the demand has resulted in the lower prices."

"This is traditionally a slow time of year for the gasoline market," said Paul Dirnberger of Rhodes Oil Co. "People just don't drive as much in January and February."

Dirnberger added that wholesale prices had been dropping over the past couple of weeks.

"When wholesale prices drop, retail prices drop," said Dirnberger. "We lowered our pump prices to 99.9 cents Monday."

According to the Missouri Petroleum Marketing Association, fuel consumption in Missouri was down about six-tenths of a percent in January from last year's figures. Missourians consumed less fuel overall in 1990 than in 1989.

Blank cited three main factors competition, demand, and conservation in determining gas prices. Better driving habits and smaller cars are instrumental in reducing gas demand now.

Charlie Davis, branch manager of the ABF Freight System Inc. local terminal, said trucking firms are doing better with the price reductions.

"It has been uncertain," he said. "They were talking about $2 a gallon gas. We feel more secure, but nothing is settled yet. We're not letting our guard down."

While most drivers purchase a tankful of gas every week or so, Davis has a different perspective. He purchases 30,000 to 40,000 gallons of fuel weekly to supply the local ABF fleet.

According to Davis, the licensed common carriers have been passing on the increased fuel costs with a fuel surcharge, which is still in effect but lower than previous levels. Once 2.4 percent, it is now 1.5 percent.