Why are Gas Prices Declining?

Fuel Station, gas, Did you just give a double-take at your local gas station’s prices? You are not alone. Over the past few weeks, the price of gas has declined to under $3.00/a gallon nationwide.

What is causing the sudden decline of gas prices?

Crude prices, supply and demand.

The United States’ oil production is up due to new technology. While the global demand for fuel is down due to more fuel efficient vehicles and poor economies post-recession.

Post -recession, people are not working and shopping as much. When they do need to shop,  they tend to drive to local areas or use  alternate forms of transportation.

With the holidays arriving in the next few weeks, the decline at the pump is a welcomed relief to people who still need to drive long distance. It may help boost economies. Instead of spending a fortune at the gas station, you can keep some money in your pocket. People may feel encouraged to spend a little extra for the holidays and drive instead of taking other modes of transportation.

What will you do with the money you save from fuel cost? Let us know in the comments.

 

Photo credit: Michelle Meiklejohn | Freedigitalphoto.net

 

 

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