Yesterday’s market drop will be a welcome relief for consumers at the gas pump. The Chicago spot fell more than 12¢ yesterday, and has fallen more than 50¢ from it’s high a few months ago. Instead of seeing $4 gas, we are now getting close to seeing prices below $3 at the pump.
But is this a good thing? Last time we saw a large drop in gas prices, the bottom really fell out, and didn’t stop until we were below $2. But that was because we were in a recession. And all indicators are looking like we will be entering a double dip sometime soon if things do not change. So while we see something we really like to see, lower prices at the pump, we will also be seeing a weak economy get weaker. I for one hope this isn’t the case.
With market prices where they are, we have a 25-30¢ gap between current averages, and where prices should be. Expect prices to continue the current trend, going lower through the weekend (unless the market explodes today).