US gas prices fall from Labor Day highs; demand up 8.3%, price up 11.6% year-over-year

US Gasoline prices fell this week in the traditional post-Labor Day slump, but demand is up over the comparable period a week ago. MasterCard SpendingPulse reported that demand in the week ending Sept. 21 fell 1 percent from the previous week, but was up 8.3 percent over the same period in 2006. The retail price for unleaded gas, $2.79 per gallon, fell 1 cent per gallon for the week but was up 11.6 percent over 2006. Oil prices fell to $79.53 a barrel on the New York Mercantile Exchange.

In states such as Wisconsin, price hikes in gasoline are linked to biofuels because of mechanisms such as the Wisconsin Unfair Sales Act, which requires fuel retailers to sell at a minimum 9.18% markup over terminal prices.

A lawsuit has been filed by 42 gasoline retailers of 42 gasoline stations in Wisconsin against Utica Energy and Renew 85, for selling ethanol blended fuels at below the minimum market price. There have been complaints filed previously against biofuel retailers, but the Wisconsin State Governor had requested that no action be taken on the complaints.

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