Gas Prices $3 First Time- For the first time after nearly four years, people can enjoy their weekend road trip without worrying about their fuel.
According to the American Automobile Association the average price of gasoline drops to 33 cents in October which is expected to fall under $3 per gallon by early Saturday morning for the first time since Dec. 22, 2010. They also predicted that it can lasts up to the winter.
When the gas price drops below $3 for the first time in four years, the association sees the lowering price trend due to the waning price of crude oil. The West Texas Intermediate crude oil price has slided to more than $10 per barrel since late September and over $20 per barrel since late June mainly because of copious supplies.
Reports also showed that crude oil had the biggest one-day price drop in two years on October 14. "It's stunning what's happening here," states Tom Kloza, chief oil analyst at the Oil Price Information Service. "I'm a little bit shocked."
The gas price falling below $3 for the first time is expected to help people save almost $250 million a day. This alleviates the falling economy of some nations and the conditions of many consumers.
The gas prices have fallen under $3 for the first time in most of U.S. gas stations which is believed to benefit majority of U.S. retailers and consumers. In September, Americans cut their holiday spending so the declining price is expected to ease their sentiments according to Commerce Department.
As the gas prices falls under $3 for the first time, the effect brings more advantages in our slumping global economy. "As gas prices fall, it frees up income to spend on other things," Charles Plosser, president and CEO of the Federal Reserve Bank of Philadelphia said. "As a nation, the net effect of that is actually positive."
