Gas prices have been rising daily for about a month, but the national average price for a gallon of gasoline fell by a tenth of a cent to $3.984 today on May 6th. However, economists are saying that it might be too soon to predict if gas price are going to stay at this price. Gas prices might get higher later in the year. Gas prices depend a lot on the price of crude oil. Crude oil fell in price this week, which may have caused the drop in gas prices. It’s estimated by Chris Lafakis, an economist at Moody’s Analytics, that for each dollar that oil prices fall, gas prices fall by 2.2 cents.
Investors in oil believe that the energy demand worldwide isn’t as strong as they thought. This is a reason why oil prices fell. Part of the reason why the economy is at risk is because of the high gas prices. People spend less on other things when they spend more to buy gas. This will make economic growth slow down.
Gas is so expensive right now because the
I think that this small drop in gas prices is a good thing for people, but I don’t think that gas prices will fall a lot more. It is getting close to summer, and a lot of people will be going on vacation. These people will need a lot of gas. Since gas is being demanded more, I think that gas prices will increase.
What do you think? Will gas prices go up or will they fall more? Do you think that high gas prices slow down the economy?
11 comments:
Gas prices will likely increase, but not only because of the coming summer season but also because of the expectation that gas prices will increase. As people feel that gas prices will only go up, they will buy more now when it is a little lower which increases demand now to influence sellers to raise prices. Though, I feel that gas prices would have increased anyway because of the fact that Americans don't want to buy foreign oil and we will eventually run short of supplies here. Economically, high gas prices with the continued dependence on gas vehicles will likely keep the economy slow as transportation takes a bigger bite out of a household's budget, leaving little for other products.
I think the gas prices will be going up. I have recently filled up my car and it was about $4.30 per gallon. That is outrageous. I think they could rise even further. I also do believe that the gas prices effect the economy because many people will choose to take less day trips back and fourth on the weekend occasionally because they cannot afford the gas to go back and fourth. Another question to ponder would be that does the death of bin laden and the war in Libya affect the oil trade that the U.S. has in the middle east?
Gas prices are going to increase. It is too bad but that is what is going to probably happen. In the summer time also people will need more gas for power, to drive to their summertime destinations and gas sometimes does not last as long when it gets really hot then in the winter. I believe gas prices really effect the economy. It puts holes in people's pockets, less money to spend on other things and people may tend to drive less. On a decent note it does make people take advantage of public transportation more. The US needs to think of some sort of alternative for gas or I guess people should use four cylinder engines. I notice I do not have to fill up my car that has a four cylinder engine that many times a month and I commute all over. Where my dad has a truck and he is constantly filling that gas guzzler.
Gas prices are always going up and down, up and down. I never really pay attention to the prices anymore because one day their $3.79 a gallon, then 3 days later, their $3.56 a gallon. I dont think they will ever stay in one range, so it's best that people stop stressing out about the prices. Frankly, when the gas prices go up, eventually they'll come back down. So whats the point of stressing out about a month of high prices when in the next month, they'll go back down again?
This slight fall in gas prices is good, but I hardly believe that it's news to rejoice and party over. The price of a gallon of gasoline fell by a TENTH of a cent. That's $00.001 per gallon. A consumer that has a 20 gallon gas tank will be saving $00.02 (2 cents). Although I do welcome any dip in gas prices, I think we should start predicting trends when the gas prices drop more significantly.
I agree with Shelby in her assertion that gas prices are always fluctuating. This slight dip might just be a careless undulation that will ultimately have no significance.
I drive truck.. i get barely 16mpg city. this sucks.
I remember when one of my friends asked me.. "ray! when are you gonna come through? its been [hella long]!"...and she lives in south bay.
i replied "when gas drops below 4$ a gallon (T_T)"
this is gonna be a while...
-Raymond Lim
Gas prices are honestly ridiculous. It now costs me $60 to fill up my tank when it used to cost around $45. People have always complained about gas prices, but it wasn't until I began driving myself that I realized the huge issue they are. The gas prices have been pretty steadily rising, and I don't see it stopping in the future. I read somewhere that the prices may reach over $5 during summer. And honestly, if there's anything that will make a family stop spending excess money, it is when they are already spending tons on gas. This has a horrible effect on our economy, as people are not spending money on luxury goods. Although there are alternatives to buying gas (biking, walking), none are convenient enough to give people any control over the gas prices. Therefore, it is really up to the government to try to help lower gas prices. But with the issues in the Middle East and even bin Laden's death, I don't see much reconciliation in our future. I wish there was something we could do about it, but at this point I'm feeling kind of helpless.
I hope gas prices skyrocket. I hope they reach 5 or $6 per gallon in the next two years. Why? Not because I want to pay exorbitant amounts for gas, but because I want hybrids and other green energy cars to become more affordable. Would there be a hiccup in the national economy? Of course there would. But our nation cannot afford to continue reliance on fossil fuels. The faster oil becomes scarce, the faster the world will build greener cars.
I agree with Alex, although I am really not looking forward to paying 60 or 70 bucks on gas this summer, I believe that the rise in gas prices are really the only thing that will force people to buy greener cars. simply telling people that oil is scarce clearly isn't enough. I'm interested to see, this summer, if there will be a drop in car prices, especially hybrid and electric cars.
Naturally, gas prices will continue rising as the global needs increase and the supply decreases. With the emergence of the BRIC markets and the addition of hundreds of millions, if not billions, of potential car owners around the world, the global gas needs are going to rise rapidly. This, in turn, will lead to a sharp increase in gas prices around the world, and we must begin investing even more heavily in alternative energy research and infrastructure development to proactively impede a largescale, gas-driven economic slowdown from happening.
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