Gas under $3? This hasn’t happened since December 2010.
According AAA, the national average gas price is about $2.97.
“For some grades of crude, we are seeing the lowest prices since December 2010,” Tom Kloza, price tracker for GasBuddy.com, said in an October CNN article.
According to the article, even with the potential oil supply decrease due to ISIS fighting in the Middle East, “political tensions” between the West and Russia, as well as the the Ebola outbreak, the prices are dropping. Oil production in the U.S. has increased, leading to a lessening of foreign oil support.
During June, crude prices had peaked when violence was rising in Iraq; since that time, the prices have dropped more than $15 a barrel, according to a CBS Money Watch article by Bruce Kennedy.
“This is great for all consumers and a lot of businesses,” Cole Waddell, a marketing representative at Federated Insurance Company, said. “When the prices at the pump go down, everyone is excited and has a little extra money to spend. It doesn’t matter what type of business you are in, I really think all of the economy flourishes when this happens.”
Consumers are estimated to save roughly $250 million from the prices at the pumps dropping from $3.68, according to the MarketWatch website.
Denise Goevert, a Hesston High School business teacher, said she believes the drop in prices can be directly related to a variety of different issues.
“As with any economic issue, you shouldn’t really just look at one cause,” Goevert said. “I think that you can look at the change to winter blend gasoline as a big factor. It is cheaper to produce. Also, we are well into the fall season, we are seeing less vacationing and less driving, which ultimately leads to a lower demand of gas.”
New York, Connecticut, California, Alaska and Hawaii are not expected to see this price drop because prices in these states are usually higher than the majority of the U.S., as reported by CNN.
“I’ve been running through the numbers and it’s pretty astonishing what we’ve been able to do here in the states with our production,” Trent Tholstrup, junior in accounting, said. “For the first time in as long as I can remember, we aren’t as dependent on foreign support for our oil, leading to a lower cost. I can personally say this is enjoyable as a college student and making the drive back home on weekends.”