Gas Back Under $4: Is the Worst Over?

The national average price for a gallon of gasoline is at $3.96. That’s a 12-cent drop in two weeks. The fall of the price of gas is almost as sharp as its rise was pre-Fourth of July, and it’s the first sub-$4 price since June 6. The price drop comes five weeks before Labor Day weekend, the last major summer driving holiday.

We’d expect to see prices go up a few cents for Labor Day travel, but otherwise it looks like the usual summer price drop-off has arrived. The big question is: Where does it plateau? Will $3.75 a gallon in the fall be a relief for anyone?

Oil rises above $125, gasoline falls to $3.958 average (USAToday)

Comments

i have mixed emotions on this. I fear that people will go back to their suv ways. Nice to save a few pennies. But people have adjusted to 4.00 gas and only another large spike in prices will cause people to tighten more than they have already. Americans are the now people, not the future people. Overall this is bad news

Will the M3 money supply data return to publication?

Will the Iran war talk be replace with the Pakistan war talk?

Right you are Alex. Some consumers are naive enough to go back to buying large SUV's. The law of Supply and Demand will then lean towards demand being dominate. I feel that gas prices will always be unstable due to so many factors influencing the price for a gallon, whether it be the weather in the Gulf, middle eastern politics/religion, Chinese people driving more, etc. all which are unpredictable. American consumers of cars should always expect the worst when it comes to stable gas prices. However with gas going down slightly I expect TV commercials to start promoting big P/U trucks and SUV's.

I seem to recall a similar event in gas price happened either 2 years ago or 4 years ago.
When it is election time, the price drops.
What does that trend mean?