• Your one stop for college news and resources!
On Campus

Big drop in gas prices for summer

Declining gas prices may be a sign of a slowing global economy

Despite the slowing job markets and sad quarterly sales reports, could there really be a silver lining in declining gas prices?

Gas prices have dropped 6 percent. The national average for gas dropped to $3.45 per gallon. In the Midwest, some areas have dropped their prices to $2.99. This year’s summer prices are 15 cents less than last year and 45 cents cheaper than a few months ago. The dip in gas prices is the first time since February when gas prices were hitting almost $5 per gallon.

Economist at Deutsche Bank, Brett Ryan, puts the decrease in gas prices as a form of economic stimulation, “Just as an increase in gas prices is essentially is a tax on customers, a decrease in prices acts as a tax cut.

The dip in gas prices is creating a hopeful outlook to the recent sales reports—the decrease in price can hopefully translate into a better summer sales report.

Some experts fear that the dip in oil prices may be a sign of a slowing global economy. Author Dan Dicker of Oil’s Endless Bid: Taming the Unreliable Price of Oil to Secure our Economy said, “There’s an enormous amount of production out there…But the demand looks weak” due to consumers driving fuel efficient cars.

Another writer, Jim Motavalli, makes a claim that the influx in gas prices can be troubling for consumers because they wouldn’t know what automobile would suit them financially—would it be worth paying premium for a fuel efficient vehicle?

Motavalli writes, “I can say that a price floor for gasoline would be a great idea that would give automakers some stable ground as they plan the future. It’s an incentive not just for electric cars but for the smaller vehicles that really should be dominating our roads.”

According to CNNMoney, declining gas prices has followed in the same suit as declining oil prices. Oil trading was at $78.72 per barrel Friday—down 20 percent year-to-date.

Previous ArticleNext Article

3 Comments

  1. I simply want to tell you that I am just very new to blogs and really liked your blog. Almost certainly I’m likely to bookmark your blog post . You amazingly have wonderful well written articles. Many thanks for revealing your webpage.

  2. What i do not realize is actually how you’re not really much more neatly-liked than you might be right now. You’re so intelligent. You already know thus considerably in relation to this matter, made me in my view believe it from a lot of numerous angles. Its like men and women aren’t interested unless it is something to do with Girl gaga! Your individual stuffs outstanding. Always deal with it up!

  3. What I have tried so far is: copy pasting from googledocs to Notes to wordpress, and copy pasting from googledics into HTML tab in wordpress. Neither tries retained the boldface text. Thanks in advance!.

Leave a Reply