Slide 2 of 10

Notes:

• Before looking at El Paso gasoline prices, let’s take a minute to look at the U.S. average price for context.

• Gasoline prices this year, adjusted for inflation, are the lowest ever. Back in March, before prices began to rise ahead of the traditional high-demand season, the U.S. average retail price fell to $1.00 per gallon. Prices rose an average of 7.5 cents, less than the typical seasonal runup, to peak in early June. Since then, prices have fallen back to $1.013. Given recent declines in crude oil and wholesale gasoline prices, we expect retail prices to continue to ease over at least the next few weeks.

• Since their sharp runup during the energy crises of the 1970’s, gasoline prices have actually been non-inflationary. Adjusting the historical prices by the Consumer Price Index, we can see that today’s prices are less than half their peak in the early 1980’s.