Falling Gasoline Prices Provide Relief to American Drivers
Gasoline prices have fallen again, based on the two most important measures, and the drop continues to accelerate. The famous Lundberg Survey reported a drop of 7.26 cents in the past two weeks to $3.4728. The cut off date for the data was November 16. The most carefully watched daily report from AAA Fuel Gauge showed a one-day drop to $3.416 from $3.418. The price for a gallon of regular a month ago was $3.692. Except for Hawaii, not a single state still has regular above $4.
The price drop may still figure in the consumer's year-end activity. The fiscal cliff may cause consumer holiday spending caution. But for Americans who drive a great deal, the drop in gas prices could save several hundreds of dollars a year. And a price increase is unlikely for now. Trouble with Iran has moved off the front pages. More and more analysts believe that the shale boom in the United States and Canada could make America energy independent in a decade. And demand for oil has slackened because of economic slowdowns in China, Japan and Europe.
Douglas A. McIntyre
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