One month after record-breaking spikes in gas prices, Hinesville area residents are getting relief at the gas pumps, despite the recent economic turmoil. Experts predict prices will continue to fall.
On Thursday, the average price per gallon in Georgia was $3.09. On Wednesday, the average was $3.17. Just a month ago, the state’s average was $ 4.15.
In Hinesville on Thursday afternoon, the price for a gallon had dropped below $2.90 for unleaded at several stations.
Gas prices are falling at an unprecedented rate, said Gregg Laskoski, public relations managing director for AAA Auto Club South.
“What we’re seeing is extraordinary,” Laskoski said. “What we find remarkable is how quickly and how steeply the prices are falling.”
Laskoski explained that in an industry where price changes most often occur in tenth’s of dollars, a drop in seven or eight cents overnight is a big deal. He said the drop, which Laskoski expects to slow, but continue through the end of the year, stems from supply and demand.
“The federal government is showing favorable numbers concerning the crude oil supply. It’s currently trading around $75 a barrel,” Laskoski said. “And, we’re using less than a year ago. The demand is relatively flat.”
Laskoski said other factors include a slight increase in the U.S. dollar’s value and a slowing global economy, which leads to people buying less gas. He attributes an abandonment of the crude oil market to a current trend to use less oil. He thinks all these factors have created a “perfect storm” for gasoline consumers.
While prices may not keep dropping by 4 or 6 cents overnight, Laskoski said they will keep dropping.
“It’s not going to continue dropping at this rate, but it’s going to continue to come down incrementally,” Laskoski said.
On Thursday, the average price per gallon in Georgia was $3.09. On Wednesday, the average was $3.17. Just a month ago, the state’s average was $ 4.15.
In Hinesville on Thursday afternoon, the price for a gallon had dropped below $2.90 for unleaded at several stations.
Gas prices are falling at an unprecedented rate, said Gregg Laskoski, public relations managing director for AAA Auto Club South.
“What we’re seeing is extraordinary,” Laskoski said. “What we find remarkable is how quickly and how steeply the prices are falling.”
Laskoski explained that in an industry where price changes most often occur in tenth’s of dollars, a drop in seven or eight cents overnight is a big deal. He said the drop, which Laskoski expects to slow, but continue through the end of the year, stems from supply and demand.
“The federal government is showing favorable numbers concerning the crude oil supply. It’s currently trading around $75 a barrel,” Laskoski said. “And, we’re using less than a year ago. The demand is relatively flat.”
Laskoski said other factors include a slight increase in the U.S. dollar’s value and a slowing global economy, which leads to people buying less gas. He attributes an abandonment of the crude oil market to a current trend to use less oil. He thinks all these factors have created a “perfect storm” for gasoline consumers.
While prices may not keep dropping by 4 or 6 cents overnight, Laskoski said they will keep dropping.
“It’s not going to continue dropping at this rate, but it’s going to continue to come down incrementally,” Laskoski said.