How does gas at under $3 per gallon sound?
When I was 17 and paying just over a dollar a gallon, I would have punched the future me in the face for being excited about $3 gas. But with recent fears of $5 gas on the horizon, news of prices dropping back below three bucks is a welcome development.
At that price, we can stop buying over-priced Eco cars and start drag-racing our Escalades on the way to the grocery store again.
The fire that fanned the fear of $5 gas earlier this year came in the form of tension in Iran and supply problems from refineries. According to the Detroit Free Press,
Those issues appear to be over, at least for now. Thursday, benchmark West Texas Intermediate crude oil fell 4% to $78.20 a barrel, the lowest price since early October and off 20% year-to-date. Coupled with slumping wholesale gasoline contracts for fall delivery, “the market is suggesting gas below $3 by Halloween, and certainly by Thanksgiving,” says Tom Kloza of the Oil Price Information Service.
Demand is down (partly thanks to those Eco cars, I suppose) and production is up, which of course means a drop in prices should continue. By the holiday shopping season, Americans should be able to smile while pulling away from gas stations on the way to happily stuff our F-150 trucks and QX56 SUVs with iPads and Xboxes.
In other good news for the wallets of drivers everywhere, car repair costs have dropped to a national average of $334 per repair, down from $422 in 2006. According to CarMD’s 2012 Vehicle Health Index,
Drivers in the western U.S. pay the most for car repairs at an average cost of $360.89, which is 17% more than drivers in the Midwest, who pay the least ($309.75).
So rest easy, commuters, street racers, soccer moms, pavement peelers and rubber burners. The cost to fuel and fix your cars is going down.
Will you drive more, or buy a different car, if gas prices drop below $3 per gallon?