Average U.S. gasoline price, down to about $1.80, is likely to fall more
Posted by: admin in Stocks Money News
Filed under: Forecasts, Commodities, Oil, Recession
Economist Peter Dawson has this little gasoline economizing tactic that he’s used probably since he earned his driving license, way back in the twentieth century.
Whenever Dawson buys gas, he only buys what he thinks he will need for a two-week period. It’s a tactic he says would help keep gasoline prices lower if every driver followed the rule, by decreasing excess demand.
“It may be a reduction of only 2 or 3 gallons per purchase, but add that up over 70 or 80 million motorists and I think you see the impact on gasoline prices,” Dawson said.
An ever-economizing economist
And lately, being the ever-economizing sort, Dawson has been deploying another tactic: he won’t buy gasoline if the price is trending lower. If the price is dropping, he’ll wait as long as he safely can, before buying gasoline. “It’s made the difference of as much as 30 cents per gallon less during gasoline’s recent price drop,” he said.
The average U.S. gasoline price has been dropping for about five months, from a regular unleaded price of about $4.10 per gallon in July to about $1.80 per gallon now, Dawson said, and the price is likely to drop more, at least until March 2009. The main reason: the collapse in oil prices, due to the U.S. and global recessions. Oil, which traded at a record $147.27 per barrel this summer, is now trading around $42 per barrel.
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Average U.S. gasoline price, down to about $1.80, is likely to fall more originally appeared on BloggingStocks on Fri, 05 Dec 2008 13:22:00 EST. Please see our terms for use of feeds.
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