So, how 'bout those gas prices?

[Jeff]

In case anyone hasn't noticed, the price of gas (or "petrol" for the Americanly challenged) has been dropping like a brick as of late. So what are your thoughts on this?

Gas at a nearby station, which I pass by all the time, is $1.76 for regular right now, and while normally at this time of the year, prices start to climb due to the impending travel season, all I've seen is the downward trend slow down. I think at this rate it'll be under $1.50 by the end of the year.

So there are alot of theories out there as to what's causing it. Probably the main one is the sucky economy. Everyone who I've heard say something about it has basically said that as soon as the economy gets better prices will shoot back up. I personally think there are some other explanations:
-The skyrocketing gas prices were due to a speculative bubble, and now that the bubble has bursted, they've fallen back to where they belong.
-The Middle East has been trying to influence American politics through gas prices, and now that they've succeeded (or at least think they did), they're letting off the pressure.
-The oil companies have been raising their prices to pressure Bush into lifting the offshore drilling ban, now that he's done it, they're letting of the pressure.

So yeah, those are all assuming that this isn't a temporary thing, so they could just be wishful thinking.

[Heald]

Petrol prices have been tumbling here in the UK too. They were about £1.10/litre a month ago, now they're predicted to be 87p/litre by Xmas. Good news for me, since I get my car back at Xmas. Yay!

Unfortunately, due to tumbling prices, the government has put up duty and tax on petrol to compensate. Boo! Bad Labour! Bad unelected government with no mandate! Go to hell and die you evil people!

[PancaKe]

Yeah. Here the prices were up to $1.70AU for a litre of petrol. I am looking at paying $1.06AU for petrol now. Hooray! Hooray! Hooray! That takes my weekly petrol budget from like $45AU to like $38AU. Which means more money for chocolate and ice creams at the petrol station!

[Crystal Mew]

I'd be so happy for the gas prices falling, if in fact I had my car to fill gas with.... >=[

my car broke down a couple months ago....needs a new engine.

[MToolen]

I live right next to St. Louis and an oil refinery, so my gas is continually under the national average. Still, I think it's around $1.63 here now. And while I am curious to know how this turn for the better came about, I'm also buying into the notion that, since no news is good news, good news is no news.

[Pichu Luver]

The prices have fallen in Canada too, the price this summer was around $1.45 CAD a litre, but now its $0.763 (Toronto area). I think the news said it hasn't been that low since 2005. The parents are happy but I'm glad I don't drive as that's still $2.89 per US gallon (changed to USD its $2.37). ¬¬''' Think I had my math right there... Anyway, go the bus! ^^'''' The prices always seem to drop in the winter, though this is quite a bit more then usual.

[Jeff]

This is way more than usual. Gas topped out at $3.99/gal in July and now it's $1.75, so that's less than half of what it was before. I don't remember how much it went down last winter, but it wasn't that much. Also, I had an economics professor a couple years ago who said that regular gas will never go below $2 a gallon again. So that goes to show how significant this is. But yeah, it is really nice being able to fill up my tank for under $20 again.

[shazza]

Why is it called a world financial crisis? Petrol/gas prices are coming down, interest rates are coming down and food prices are comng down.

Financial crisis? More like financial harmony!

[Austrian ViceMaster Alex]

It's a crisis as many countries are facing an economical recession in the upcoming year. The economy shrinking isn't a good thing as everyon has to tighten one's belts and if a company does that it often ends with personnel being fired.

In Austria gas prices are sinking as well but everyone is upset as the price per barrel oil has dropped by like 50% but the gas prices at a gas station have only dropped by 20% or so. So they are suspecting the oil companies to fill their pockets. I work for one and I can only say the pockets are empty.

[shazza]

Dude, I wasn't serious.

[Dark-San]

Alex, it is more of a natural person's instinct to be paranoia in times like this. If times are bad, why should I spent? They do not think economically whereby spending would mean more liquidity within the market that could propel the market conditions. Not everyone is as economically minded as you would expect.

Oil prices doesn't affect me much since I do not drive. Blame it in the ridiculous car prices here! But then, lower oil prices mean future cheaper food prices from suppliers since our main food supplies comes down from Malaysia. It might be a good thing but I am more worried about the job prospects.

[Heald]

Yeah, the oil price affects far more people than drivers. Many small companies went out of business in the UK and one of the causes was the high price of oil leading to high supply costs. You notice it more when you're driving but living costs tend to go up when the price of oil goes up.

[Dark-San]

You notice it more when you're driving but living costs tend to go up when the price of oil goes up.

When living costs goes up, it is nearly impossible for them to come down to meet the declining oil prices as they are already fixed or 'peg' at a certain level. As a result when there is a recession together with a higher cost of living that refuses to come down, people will start tightening their pockets, which eventually lead to an even deeper recession and a longer recovery path.

It is all a chain cycle.

[Heald]

Not necessarily. Places such as supermarkets will cut prices where they can in order to remain competitive

[Dark Scizor]

Fuck yes, 89p for a litre.

If I wasn't at Uni at the moment, it'd actually be useful.

[PancaKe]

$1.09AU on Tuesday.
Heck yes.

[Houndoom_Lover]

Its nice to see the prices stop going up- I mean, W.T.F, I live currently where the oil stuff first took off in America. High prices are just wrong here >.>.