Tuesday, October 21, 2008

How Low Can You Go?

Just a note to say that gasoline prices in my neighborhood have fallen to $2.99 per gallon.

I'm now wondering if I will see that kind of trend reflected in the price of all the goods and services which raised their prices when the price of oil went up- food, for instance, and milk in particular. I've been told this drop is due to a drop in demand, but it's hard for me to believe that demand fell so much and had such a rapid impact on gas prices. My cynical side imagines a government official on the phone with an oil tycoon saying,"Ok, we've let you have your fun. Now go ahead and drop the price to give those poor people a chance to breathe... and we'll turn a blind eye when you jack it up again later." A little slap on the wrist for such blatant price gouging.

Can anyone shed more light on the subject? And what are prices doing in your neck of the woods?

4 comments:

Anonymous said...

There's 2.79 in my neighborhood!

Seshat said...

Dropped to $2.59 today. We'll see how long it lasts.

The Finck Five said...

Maren, saw your blog and thought I would share, down here in south Texas we are only paying 1.95. I guess there is one nice thing about living here.
James

Maren said...

What!? Holy cow! What did it peak at over the last few months? We're down to $2.88. And that's only gasoline- most of us up here also heat our houses all winter (that's like 5 or 6 months) with heating oil, which tend to follow gas prices. We use roughly 500 gallons per winter... $1.95 sounds mighty nice, and so does a Texas winter. Enjoy it!