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How low can it go?

Gas prices at the pump are falling are falling below $2 a gallon in South Florida. From the Miami Herald-

Gasoline prices, in stunning free fall, broke the two-buck barrier at some South Florida stations on Thursday.

There is no need to rush out for a bargain fill-up. By the weekend, a gallon likely will be even cheaper.

Linked to the crude oil that is refined to produce it, gasoline has undergone record price plunges, faster even than the Dow Jones industrial average's tumble. It may well keep dropping until the new year, analysts said, offering beleaguered consumers an early and unexpected holiday gift in an otherwise Scroogean economy.

''I don't think we have ever seen a month like October when gas prices fell by five or six cents a day,'' said Gregg Laskoski, a spokesman for the American Automobile Association Auto Club South, which tracks gasoline prices in Florida, Georgia, Tennessee and Puerto Rico. ``It's phenomenal.''

The average price of a gallon of regular unleaded gas in Florida has fallen a staggering 49 percent to $2.06 since an all-time high set only four months ago. In July, gas in Miami and Fort Lauderdale cost about $4.16 a gallon. On Thursday, the averages were $2.20 and $2.14 respectively.

Nationally, the drop since July has been more than half to $2.02, with 23 states now posting average regular prices below $2 a gallon.

The lowest price in my corner of Palm Beach County is $2.15 a gallon. I'm predicting I see prices under $2 by the first week in December.

Falling gas prices when taken by themselves is good economic news. It makes my visit to the gas station every 10 days or so less painful. Wizbang contributor Lorie Byrd also got her wish. The lower prices at the pump however is a symptom of the slumping worldwide economy. Demand is down because production decreases demand is down. So while consumers are taking a smaller visible hit at the gas station, they are being hit less visibly in other places and probably much more substantially.

Hat tip- SFDB

Update- Fixed my post to what I really meant. Gas prices are down because of lower demand.


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Comments (19)

How long do you think it wi... (Below threshold)
CZ:

How long do you think it will be before the usual congressional democrat buffoons haul in top oil company executives, make them testify before some schlub-committee and demand to know if they are deliberately conspiring to drive prices down?

I live roughly between The ... (Below threshold)

I live roughly between The Great Smoky Mountains and the foothills of the Nantahala/Cherokee National forests, home of the Cherohala Skyway so we have a wide range of regular unleaded prices between $1.78 and $2.06 depending on how close you are to the touristy areas.

While I was coming to work ... (Below threshold)
Dennis:

While I was coming to work this morning, in New Haven In near Fort Wayne, In, the price of gas was $1.78.

It's $1.75/gal for unleaded... (Below threshold)
Mark L:

It's $1.75/gal for unleaded regular in Houston, TX


Today. Nov 21, 2008.

"Demand is down because ... (Below threshold)

"Demand is down because of production decreases."
That doesn't even make nonsense. Demand is down due to a weakening economy and conservation efforts. Production is down because demand is down. OPEC can't entirely control the world market but they can cut output (and have methinks) when the bbl price tanks.

$1.67 in Indianapolis IN!</... (Below threshold)
Spencer:

$1.67 in Indianapolis IN!

$1.56 here in St. Louis yes... (Below threshold)

$1.56 here in St. Louis yesterday

$1.73 in NJ most taxed stat... (Below threshold)
JAT:

$1.73 in NJ most taxed state in the union

Gosh that's odd that the co... (Below threshold)
P. Bunyan:

Gosh that's odd that the cost of gas dropped in half immediately following the Democrat's lifting their oil embargo and so many morons still believe they dropped because "demand is down". Of couse these are the same morons who believe "we can't drill our way out of this".

The demand dropped many months ago when the price skyrocketed, but still the price stayed high. The price dropped a little when President Bush lifted the executive ban on off shore drilling, but it didn't plumet to current levels until the Democrats who've controlled Congress for the last two years (remember the last time prices were low? hint: before the Dems took control.) actually did the uncharacteristic thing for them and acted in the best interest of the American public.

Now, I'm not saying that the global recession and falling demand is in no way responsible for the price drop. It is responsible for maybe 30 to 50 cents of it, but lifting the Democrats oil embargo is responsible for about $2 of the drop.

And since most Americans were as ignorant and ill informed and the author of this post appears to be and they elected Obama and gave the Dems even more power in congress we will see the embargo reinstated in a couple months and the prices will be right back over $4 or more, even though the demand will not go back up.

Hell, Obama campained on the promise that his policies would cause energy prices to skyrocket you f-ing morons. We already seen that and we're about to see a whole lot more.

P.S. The "Knucklehead of t... (Below threshold)
P. Bunyan:

P.S. The "Knucklehead of the Day award" goes to Bill Jempty and everyone else who can't put two and two together.

The Department of Energy ar... (Below threshold)
hyperbolist:

The Department of Energy are the ones spreading that liberal lie that the energy crisis cannot be drilled away, PB. OMG Bush's energy people are socialist tree huggers!!!

When gas was $4/gallon it was Nancy Pelosi's fault. Now that gas is

It's worthless to argue wit... (Below threshold)
P. Bunyan:

It's worthless to argue with you Hyper, I'm just gonna bookmark this post and point back to it next spring after Obama's left-of-Marx policies have a chance to sink in and oil is passing $200 per barrel and gas is passing $5 per gallon.

And at that time you'll still deny the reality of it all.

Gas is $1.95 around here no... (Below threshold)
Lorie Byrd:

Gas is $1.95 around here now (NC)and has been for a few days now. My mother in law paid $1.66 in Arkansas last week.

I think there are two big reasons for the price drop -- reduced demand (people stopped driving as much) and the fact that Democrats seem open to drilling for the first time in my lifetime. I know there are other forces at work, but it those two have to be biggies.

Someone deleted the bottom ... (Below threshold)
hyperbolist:

Someone deleted the bottom of that post. (Fun!)

I just wanted to remind you that it was Speaker Pelosi's fault when oil/gas were expensive, but now it's not her fault that they're cheap. It's fun to reduce the complexities of the value of commodities to partisan hackery, ain't it!

"but now it's not her fa... (Below threshold)
P. Bunyan:

"but now it's not her fault that they're cheap"

Where did I say that? You sure have a habit of constructing straw men.

I said the Dems did lift the embaro to ensure more votes, but they will re-instate it next January and up go the prices again.

I wasn't speaking to you sp... (Below threshold)
hyperbolist:

I wasn't speaking to you specifically, PB, but to those who blamed Pelosi for high gas prices (as if she's a controlling member of OPEC!).

$1.65 in Tulsa County, Okla... (Below threshold)
Dodo David:

$1.65 in Tulsa County, Oklahoma as of 11/21/08.

Well then you were speaking... (Below threshold)
P. Bunyan:

Well then you were speaking about me, Hyper. I blame the Dems for the high gas prices and I thank them for lifting their embargo so that prices could drop to where they are now. And I'll blame them again when the reinstate the embargo next January or February and the prices skyrocket as Obama promised.

Bill, will you know give Ma... (Below threshold)
Mitchell:

Bill, will you know give Mark Steyn a break when he "mistypes?" Had to call you on that.




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