I got gas yesterday.....and paid ONLY $1.99(9) a gallon! Prices have been falling lately, but I was shocked to see a leading "1" for a gas price. Especially in the middle of a big city - though this station is my go-to place for the best price when I'm getting on the interstate(s) to get out of town.
Not terribly long ago, prices at this place and around the area were upwards of $3.80. I've heard that the lower prices now are because of reduced demand. Seriously? Perhaps there are less cars on the road because of the "recession"...and prices may be lower as we're out of the summer driving months. But...50% lower? This just shows, IMO, what a crock those high prices were and how the oil companies had to be making a ton of dough. I've heard (but never really seen numbers to back it up) that gas station store owners don't make much money on gas - it is more on the food and other crap that people buy when they come in to pay for the gas. If that is the case, how can stations afford to have $0.25 swings in gas prices over the course of a week? I can't imagine that they are getting new gas deliveries at a higher frequency with such variances in prices.
I guess I need to bone up more on economics. I understand supply/demand. But, if gas is such a low margin thing for the stations, but large decrease in price is hard to understand (not that I don't like it). I wonder if there have been changes in oil production. I wonder how things will change come January with the new presidency. I wonder if gas will drop to $1.50. And....I wish I had sold my "oil" mutual fund back when prices were high. doh!
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