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Miles of smiles at pump Mail Tribune / Bob Pennell Brandon Martin of Phoenix updates the sign at the Arco station near the corner of South Stage Road and Highway 99. Gas prices have fallen as low as $1.14 ($1.139) because the country is awash with fuel oil, thanks to shrinking demand for gas and aviation fuel. Gas prices in the valley hit their lowest point since '98 By DAMIAN MANN Mail Tribune Santa Claus gave the Rogue Valley an early Christmas present, dropping off some of the lowest gas prices in recent memory. The average cost of a gallon of regular unleaded in the Medford/Ashland area is $1.23, making it the lowest price since 1998, according to AAA Oregon. In September 2000, customers paid the highest recorded price at $1.88 a gallon. A quick survey of stations along the Interstate 5 corridor showed some have dropped the price even lower, down to $1.14 a gallon, compared to last month's average of $1.49. "It's a tremendous difference," said Ashland resident Harry Detwiler. "I was wondering what kind of shenanigans were being pulled before. You'd think that with a war going on, we'd be paying a lot more." Detwiler paid $12.75 to fill up his pickup at the Arco AM PM at the intersection of South Stage Road and Highway 99. "It cost $18 usually," he said. "That's a big savings." The Arco station, like many across the valley, has found itself constantly lowering prices. "We've been changing them a couple of times a week," said Arco employee Brandon Martin. The price reductions have been averaging about 2 cents each time, he said. On Wednesday, the station dropped the cost of gas to $1.14 from $1.16. AAA spokesman Elliott Eki said the country is awash with fuel oil, thanks to lower demand for gas and aviation fuel. "We should be fine as long as the war on terrorism doesn't move into Iraq or other oil-producing nations," he said. OPEC has discussed raising crude oil prices, and the demand for home heating oil during the winter could also drive up prices. Eki said the United States recently has taken steps to expand its oil reserves as an emergency measure. As low as gas prices are in Oregon, they still remain the highest in the continental United States, said Eki. The national average for gasoline is $1.11, with some states such as Georgia and South Carolina reporting a gallon going for less than $1. A gas station in Eugene announced recently that it would lower unleaded regular to less than $1 a gallon. The average price in the Eugene-Springfield area is $1.14. Portland remains high, averaging $1.341 a gallon, and Salem is $1.267. The last time gas prices were this low was in 1998, when they hit a national average of $1.02. Reach reporter Damian Mann at 776-4476, or e-mail [email protected] Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.