Oct 14th, 2008
A Positive: Gas Prices are Coming Down!
Yes, even here in the islands, gas prices are (finally) starting to come down. By no means is gas a true “bargain”, but compared to prices in July, things are improving considerably.
Fuel prices have been so high for so long that they definitely contributed to the slowdown in the economy. For most folks, fuel costs are not a luxury or optional, they’re a necessity. Personally, for me to reduce my fuel usage by 5%, as documented in this blog, has been a struggle. But that said, people have managed to reduce their use in light of high prices and the speculators in oil trading have been hung out to dry the last few weeks, with crude oil coming down in price about 40%. While this is more likely to result in about a 20% drop in fuel prices (40% would be fantastic, but unrealistic), it’s also resulting in people having a few more dollars to spend on things aside from fuel. This kind of discretionary spending is the kind that helps to boost up the economy, so it’ll be welcome.
Lower fuel prices will also help businesses that are directly or indirectly dependent on the price of gas and energy (and which businesses aren’t?) keep costs down and hopefully turn more of a profit.
Whether they’ll be down for awhile no one really knows right now, but it’s the brightest spot of only a few I can see in the economy right now.
[...] Uncommon Cents observes that it’s easier to save money when gas prices are coming down. [...]