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Gas prices dropped another 15 cents over the last two weeks. That news sounds good, but it really isn't. Gas is still much too high and is staggering compared with a year or two ago. According to the AP, a gallon of regular is down to $3.70, and premium is $3.95.
While the improvement would seem to be good for the economy, gas prices are still just too high. Filling the tank on an SUV or pickup is probably a $70 ticket. Even a small, fuel-efficient car can't stop at a service station for much less than $30.
The media reports on gas prices are misleading. They are about the modest drop in costs but fail to look at the numbers relative to the period when a gallon was $2. In some parts of the U.S., prices were that low in early 2007.
It is unlikely that falling gas prices will do much to improve consumer economics until the register reads under $3. Until then, the consumer will stay pinched and won't be over at the mall buying new clothes.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
8-25-2008 @ 10:15AM
sagg1948 said...
Congrats finnaly an editor writing an article and telling the truth. Instead of reading all the propaganda from the liars on wall street and other varous bull.
8-25-2008 @ 10:43AM
John Parrish said...
America must go to WAR on our independence from others for Oil....We are fooling ourselves if we believe prices are going down.......Demand dictates that...... But let's at least be smart and Produce our Fuels at home....That means JOBS..
8-25-2008 @ 11:00AM
Dan Barnett said...
Sagg, that's unfair.
Although Mr. McIntyre can let his politics intrude, his posts are usually thought provoking & informative.
8-25-2008 @ 11:25AM
william lindblad said...
Without the credit mess the economy might have sustained 3.25-50. With it, under 3.00 is a good figure.
However it is doubtful that this will be a reality anytime soon.
8-25-2008 @ 12:47PM
gary kurzawa said...
I hope everyone reading this article realizes that there will never ever be a $3.00 gallon of gas in this country. The oil companies will continue to inflate the cost of gas, refuse to build new efficient refineries. And continue to pay the comedies speculators to keep the price of crude as high as we can stand it. They know that the world is running out of sweet crude and they will not let there profits fall until there is no more crude.