Falling Gas Prices May Bring Relief to Battered U.S. Economy

By Automotive Staff | October 22, 2008
It wasn’t that long ago when we were all screaming bloody murder because the cost of gasoline was $4 or more a gallon. Oh, what a difference a day makes. Well, in this case, a few weeks make.It is being reported that the average price of gasoline has dropped to less than $3 a gallon and that the price of gasoline will continue to decline. It is expected that we will all be paying about $2.80 or less a gallon by Halloween, said an energy risk management firm exec. The lower price of gas can be contributed to the drop in demand. Demand has been dropping steadily each week and has now reached a level that is 9.7 percent less in October than it was previously. And the market meltdown has also contributed to the windfall. A bad economy contributes to reduced demand. This could prove to be good news to the auto industry. When gas prices were up to $4 a gallon, consumers who wanted to buy a car were looking at vehicles that had a fuel efficiency rating of about 30 mpg on the highway or better, say pundits. With gas prices falling, consumers are now widening the range of vehicles they will consider. Our take? The falling price of gas is a great refresher as we suffer through the current credit meltdown. It is making it easier for some to fight through the storm. Take advantage. Gas hasn’t been this cheap since February. via USA Today