The way things are going with the economy…gas prices may continue to go down. And that means fuel costs for trucks and airlines that ship products will fall. And with lower costs, companies may pass that savings on to consumers in the form of lower prices. But the catch is those prices will only go down if people start spending less.
“And so as people are penny pinching and really tightening their belts for a potential rough ride with the economy that will manifest itself into lower demand across the board. And of course if we get lower demand then obviously prices go down.”
Alan Lammey is an Energy Analyst in Houston. He says we’re already seeing oil prices drop sharply.
“About a month ago, the average cost of gasoline in Houston was 3.43 cents. As of today,it’s about 3.23. And if you look around, you can find prices that are actually under three dollars right now.”
Lammey believes the economic situation could get much worse even with the bailout. More companies may be forced into lay-offs and more Americans may decide to keep their money in their wallets. But the bottom line is Americans may indeed find themselves afraid to open their checkbook, but for those that do…they may find things much cheaper.
Bill Stamps. KUHF Houston Public Radio.