A couple of months ago, gas prices were soaring through the roof – well over $4 in California and approaching it on the east coast. There was a similar fear that heating oil prices might surpass $4 a gallon during a cold winter. The exciting news to day is that this might just be a bad memory and gas prices could dip below $3 – maybe well below. Here’s why:
– Prices were artificially high this fall – an adjustment
– No hurricane damage to oil refineries (although I think this is part of the artificial story)
– People are using more fuel efficient cars and driving less
– Demand for gasoline and heating oil is less because we are using alternatives.
This will go a long way to helping the economy via our wallets. What a difference $.50 or $1.00 will make in your budget. The problem is that when the price dips we go crazy using more and more fuel. We’ve published many stories over the years, in both the print Almanac and here on our site, on ways to save money on energy costs, including 20 Ways to Save on Gas and Save Money and Energy This Winter. If we all could act like fuel misers by driving smart and insulating our homes, the prices would never rise again.
Enjoy this unexpected gift!