11/15/2005

Gas Prices Continue to Fall

I think just about everybody has noticed the change in gas prices over the last few weeks. How could you not? Gas prices reached at a record high for the month of September due to the effects of Hurricanes Katrina and Rita. There was really only one way they could go and that was down. Now that the gas prices are now below $2.50, are consumers going to be willing to buy more gas? The answer is yes. Consumers have a tendency to forget the past and focus on the present. The fact that gas is still nearly 33 cents higher than it was last year is almost irrelevant to consumers. The only way that prices will steadily continue to fall is if the demand for the product actually fell, but as we all know this will not happen with the price of gas falling the way it is. I am not complaining. I love cheaper gas as much as the next person, but as a whole we are always going to pay higher prices for gas than in the past.

2 comments:

Bob said...

It’s comforting to see gas prices on the decline, but why is Cedar City still comparatively higher than the surrounding areas. There are areas in northern Utah that are selling gas for under $2.15 per gallon. Las Vegas and Mesquite have always had higher gas prices than Cedar City, but for the past few months Cedar City has been as high as or higher than both Mesquite and Las Vegas. I grew up in Mesquite and our gas prices have always been typically ten to twenty cents higher than Cedar City’s. I think that the stations here in Cedar are taking advantage of their customers and are keeping prices higher than necessary.

Dr. Tufte said...

Gas prices are now lower than they have been in over 6 months.

Have you heard anyone note that somehow the oil companies are 40% less greedy than they were just 2 months ago?

Does it bother you that this doesn't happen? It should.