Posted By RichC on June 22, 2012
I filled my tank on Tuesday in southwest Ohio for $3.59 which I thought was 10 cents cheaper than other stations, but noticed pricing dropping rapidly this week and even lower while fueling a rental car in Florida (which is usually higher than Ohio). In fact, I just noticed stations at $3.09 and had to do a double take.Yes, I know the tension have eased in the middle east (questionable), and that OPEC decided not to cut production even though supplies are plentiful … and economies around the globe are slowing reducing the demand … but I’m still surprised to see the drop at the beginning of summer and during peak travel season. I suppose that is good news for vacationers and those earning their living on summer tourism. As for the economic slowdown, the U.S. is no exception and even the Fed admitted this week that we aren’t recovering from the long recession as quickly as expected. For those disagreeing with President Obama and the Democrats’ policies, we are not all that surprised, and unless some kind of change in Washington DC encourages business growth and public sector cost containment (ie. reducing deficit spending), I think the odds of a double dip recession are increasing. We can’t continue to grow government, tax, regulate and spend our way to prosperity.
2012 started with fears that gas prices could spike to $5 per gallon and beyond, but a new report suggests that gas price could actually dip below the $3 mark by year’s end.
Turmoil in the Middle East had many analysts calling for $5 gas by the summer driving season, but tensions have eased and so have fuel prices. Add in a world economy that isn’t recovering as fast as first hoped and we could see prices below $3 per gallon by this fall.
Across the country gas prices now average $3.47 per gallon, down $0.47 cents from this year’s high in April. In some parts of the country prices have fallen even farther, with a gallon of gas averaging $3.06 in South Carolina. Moreover, 30 percent of the state’s gas stations are charging less than $3 per gallon.