The Outlook for Gas Prices

Will Gas Prices Continue to Drop?

Gas prices have been dropping considerably in recent weeks, and some people want to know why and whether or not it’s going to continue. There are many factors that affect what you pay at the pump, and with the recent dip in gas prices, you probably have a few questions you’d like answered.

Where’s It Heading?

There has been an increase in gasoline inventory due to a recent discovery of crude oil, and that is benefiting consumers greatly. Analysts are expecting gas prices to drop even further, and that means consumers can enjoy greater freedom to travel. Low gas prices can be a welcomed relief to those of us who have a long commute to work everyday. Many consumers have postponed out-of-town trips due to high gas prices that began to escalate back in 2004. Now, that gas prices are coming down, it is a good time to plan some of those postponed trips.

Supply & Demand

Gas prices represent economics in action. The law of supply and demand is never more apparent then when you look at gas prices. The “powers that be” may want you to think that the decrease in gas prices is solely due to the recent crude oil discovery or changes to the economy, but that’s not the whole story. The fact of the matter is that when gas prices began to skyrocket, we all started using less of it. Don’t think the people providing us the gas didn’t notice. Just because gas prices have dropped, don’t stop your gas-conservation behavior. Keep kicking them in the financial gut and let’s make sure they keep prices down.

I think the past few months have been an eye opener for all of us. We are way too dependent on gas and those who provide have too much power over us. Let’s use as little fuel as possible and let’s keep acting as if gas prices are still high. It appears that someone is taking notice of our decrease in gas consumption. Let’s keep it that way.