Gasoline prices in our recessionary age continue to make consumers see red, such is the expense of operating the internal combustion motors that spin the wheels of commerce and leisure. However, specialists are now forecasting that an economic respite is headed our way. The Detroit Free Press reports that fuel costs will likely fall below $3 per gallon by the start of fall 2012.
Everybody looking forward to that
In a ton of places in the United States, lower fuel prices are already being seen. It is a great change that a ton of customers are excited about, specifically customers in states where fuel prices increased over $4 per gallon in April 2012.
\”It is going to become a national trend very soon, because oil has dropped below $80 a barrel,\” said Oil Price Information Service executive director Denton Cinquegrana. \”All things being equal, and we don\’t see anything major happening over the next couple weeks, I wouldn\’t be surprised to see prices drop even more.\”
Average over the country
The national average was $3.45 Friday, which is 2 cents lower than the day before a 22 lower than May, according to an AAA Daily fuel Gauge Report. In Detroit, the average was $3.64 per gallon last Friday, which is 20 cents lower than the previous week and three cents lower than the previous day. Last year at this time, gas costs were at $3.62 per gallon, which shows a big decrease. It could take a few more months before gasoline costs hit the level under $3 per gallon, but it should get there.
Why a decrease?
There are a ton of reasons for the reduction in gas prices. The economic troubles in Europe and China have taken tension in the oil investment market away while oil refineries have been finished the change to summer blends for oil. Other refinery maintenance projects have been completed too. The Middle East is also not facing as much turmoil recently, according to Cinquegrana.
\”You have a little bit of a double-edged sword,\” said Cinquegrana. \”Lower gas prices are good for Main Street. It is like your own little tax break.\”
Should be better
Gasoline retailers are taking advantage of the chance to sell more gasoline since the only real reason for a decrease in commodity prices is because there was a fall in demand. Wall Street pundits explain that the drop below $3 a gallon does not mean an increase in the economy.
\”As retailers, yeah, we\’d like it lower,\” said Ed Weglarz of the Associated Food & Petroleum Dealers.
The cash saved by consumers will most likely be spent on other items such as car washes or concessions though. That is why retailers are anxious about the drop a few cents per gallon. Weglarz does not necessarily mean consumers will spend more on gasoline.
Decreasing fuel costs
When have you required more info about a new or used vehicle and turned to an online search on \”auto loan amount?\” Look no further, all the details you would need is at CarDealExpert.com! Wish to know more details on Car Deal Expert? Car Deal Expert.
Fall Magic: Fuel Expenses Below $3 Per Gallon
No comments:
Post a Comment