Gas Prices Falling -- So What?

Gasoline prices have dropped more than 20% in the past few (2?) months. What does that do for you and I? Plenty! The less we have to spend putting gas in the tank -- a commodity which we very much need -- the more we have to spend elsewhere -- like on food, clothing, maybe even eating out or going to a movie.

Gas prices have an enormous affect on the economy. It is one of those "must have" commodities of today. So when gas prices rise, we spend less elsewhere and that hurts local businesses everywhere -- suddenly there's a national "belt tightening." We need gas for our cars so we can get to work, get the kids to and from school, get to the grocery store, etc. Delivery drivers, truckers feel the pinch because they certainly need gas to fuel their vehicles to get goods to the store shelves. They pass along the incresed cost of fuel to the locations they serve, who in turn pass it along to us in the form of higher prices on food, clothing, and other necessities! So we end up paying for high gas prices at the pump and EVERYWHERE else.

Thankfully, the price of crude oil (the underlying commodity that drives the price at the pump) has been gradually falling. Iran has settled down, there have been no major hurricanes like last year, the summer driving season is over, and crude oil inventories are at high levels. Translation: supply is higher than demand so the price continues to fall. That is the best way to get the price of most anything to fall -- quit using it! When supplies start building up, prices fall to get the product moving again. Merchants adjust their prices to entice buyers to spend. Market forces are much better at adjusting prices than any govermnent could ever do.

Want to keep the price of gas falling? Plan your daily driving -- if you know you're going to have to take the kids to school and then pick them up later, try to do errands while you're out. It saves just a little bit if you do more while you're already out and about rather than coming home between to-do's.

Don't fill up completely every time you go to the gas station. That one takes some discipline. My car holds about 16 gallons of gas. I put $25 worth of gas in the tank once a week. I know that gas has to last me all week long so I am careful what I use it for.

Buy gas when you see the price fall a few pennies. I watch the price of gas at the stations around where I live. I know that when I see the price of crude oil fall, there is sure to be a fall in price at the pump soon. So if I'm near my refueling day, I might wait to see if the price falls or if the price is too good to pass up, go ahead and get some fuel in the tank. Just know that it still have to last until next refueling time.

Just a few simple things to do your part on a daily basis to increase the overall supply of fuel and watch the cost continue to fall. Are you making that much of a difference? Not really, but if you get others to follow your example, the intended effect on fuel prices will be evident at the pump.