Gas Prices Finally Dropping

It's about time. Finally, there seems to be some relief in site at the gas pump.

Prices have dropped nationwide by about a nickel and experts predict even bigger declines through the rest of the summer.

"So often we hear gas prices rise like a rocket and drop like a feather, this time, they're starting to drop like a rock and that's a good thing," says Phill Flynn, Vice-President at Alaron Trading.

This is partially because demand is down about 4 percent than normal. Because of the cost, many folks have found alternative forms of transportation this summer.

Though relief equates to only a few cents, consumers are taking notice.

In Detroit, business is picking up at a local Citgo station, where the price of regular gas dipped below $4 starting last Wednesday and fell to $3.89 by Sunday.

"It's very noticeable," says Ben Sandhia, station supervisor. "When it goes below $4, people feel it's a bargain."

Many analysts warn not to assume the worst is over. Just because the situation improved over a week, does not guarantee that prices will stay low.

Comments

[fixit]

As quickly as it dropped, it can shoot right back up again. This doesn't feel like much of a break to me. I guess we're getting conditioned to high prices.

[vivamurillo]

The speculators will drive it up again soon enough. It's not just about supply and demand anymore. Speculation in this area has caused a lot of the runup, and will continue to do so.

[ConcordeDad]

I got excited for a second when I was driving through Springfield, MO and bought gas for $3.48 a gallon. Then I realized that I shouldn't get excited about saving a couple cents over what I pay at home ($3.63) because it's not a huge drop. It rose $2 in a short time, but it will NEVER get back down that low. If it dips below $3, it will be because of politics and empty promises that will temporarily give us a gas relief.