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Price War Drops Gas Below $3

POSTED: Tuesday, August 12, 2008
UPDATED: 6:49 pm CDT August 12, 2008

A gas price war that has fuel selling for less than $3 a gallon turned into long lines for two northwest Harris County gas stations, KPRC Local 2 reported Tuesday.

Two gas stations on Eldridge Parkway at FM 529 started the price war at about 3:30 a.m. on Tuesday.

Word quickly spread and long lines formed when gas prices kept dropping. At one point, the lines continued onto the street and created gridlock.

At 3 p.m., gas was selling for $2.85 a gallon at the Shell station and $2.83 a gallon at the Chevron across the street.

By 5 p.m., Chevron sold gas for $2.39 a gallon while Shell dropped its price to $2.49.

At 6 p.m., the price fell to $2.34 for Chevron and $2.37 for Shell.

Even big rigs got in on the action when diesel dropped to $3.69 a gallon.

"We're just having a friendly competition and it's a good thing for the customers. They're getting a good deal out of it, so everybody's happy," said Sunny Gill, Shell's manager.

Chevron ran out of gas by 6 p.m., but a new shipment was expected within an hour, so drivers just parked and waited.

"A girlfriend of mine told me about it and I came running over," customer Terry Jackson said.

There's no word on how long the gas price war will last or how low prices will go.

"We set a mark at 99 cents. I’m thinking maybe they should stop, too, by then," Gill said. "We're just going back and forth until they stop."

The initial price drop was part of a grand opening celebration for the Chevron.

The average gas price in Houston on Tuesday was $3.62 and diesel was $4.44.

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