SEABROOK — A little capitalism is going a long way at the pump in Seabrook.
Gas prices continued to plummet yesterday as falling world oil prices and acute competition brought the price of a gallon of regular to $2.45 along Route 1 in Seabrook by midafternoon.
Gas station owners said price mostly depends on the global oil market prices. But the competitive atmosphere among Seabrook gas merchants has a lot to do with the growing lines at their pumps.
Richdale Convenience Store and gas station owner Aboul Khan started off yesterday morning pricing gas at $2.46 per gallon. After taking a 1:30 p.m. drive to check his competitors, he dropped prices another penny to $2.45. It's an example of capitalism working for the consumer, he said.
"This competition is good," Khan said. "It's good for our customers and good for gas station owners, because it draws customers and protects our customer base. No matter what, drivers know they're going to get good prices for gas in Seabrook, so they come here."
Charles Mabardy, who owns a number of gas stations in both New Hampshire and Massachusetts, believes Seabrook has the best gas prices in a 30-mile radius, in part because New Hampshire's gas taxes are lower than Massachusetts'. But there's another reason, too.
"You absolutely have to be on your toes to do business in Seabrook," Mabardy said yesterday. "Prices can drop here two or three times a day."
As a multi-station owner in Seabrook, Mabardy said he offers options to gas consumers. His new station, known in town as "Monster Gas," keeps prices low by cutting out credit cards and taking only cash. Removing credit from the mix alleviates the fees merchants pay credit card companies, he said, allowing him to usually have the lowest prices in town.
At his Seabrook Sunoco station, prices are a bit higher, he said, because there he takes credit cards and sells a brand-name gasoline. Some drivers are willing to pay a little more for both options, he said.
Khan has thought about eliminating credit cards to lower prices further, but didn't because it's a "credit society," he said. He worried he'd lose customers if he tried to change the way people handle their gas finances.
A sharp monthlong decline in the cost-per-barrel of crude on the world market has lowered gas prices about $1 a gallon nationally in 30 days, according to GasPrices.com, a Web site that surveys prices across Massachusetts, New Hampshire and other states. The Web site indicates gas yesterday was 13 cents lower per gallon than it was a year ago.
In Seabrook, the drop has been remarkable. On Oct. 9, for the first time since winter, gas dipped below $3, to $2.98 per gallon at some stations. Yesterday, only 18 days later, it had dropped another 53 cents.
Drivers were smiling at Seabrook pumps yesterday, but they were almost fearful of discussing their good fortune. They didn't want to jinx the drop and see prices rise again to $4 a gallon.
Khan couldn't be coaxed into predicting how fast and how far gas prices might drop, saying it all depends on the global oil market.
Mabardy chuckled, then made a prediction that was as much prayer as educated guess.
"I'll say $2.19 a gallon for regular by Christmas," he said. "But, I'd like to see it even lower. It would be good for everyone and the economy if gas goes down."
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