Lower Gasoline Prices Will Help Consumers and Businesses Alike

Despite government policy, gasoline prices are trending down. That's good for both consumers and businesses.

Just think how much better things would be if government policy somehow shifted toward economic growth and energy independence. Oh well, such is life.

Lower Gas Prices Off Some Much-Needed Relief says this:

"Few saw this coming a month ago.

Gas prices have dropped from pretty high levels over the past few weeks, offering some relief to consumers who are grappling with higher taxes.

The national average price of gasoline last month fell 15 cents, or 3.9%, to $3.63 a gallon, the first drop in March in 10 years, according to the Automobile Association of America. Prices are 29 cents lower from where they were at this time a year ago.

 

“It is very unusual for gas prices to decline in early spring like we have seen this year,” AAA spokesman Avery Ash said in a statement. “An increase in refinery production and lower oil prices in early March have combined to provide rare falling prices for motorists in comparison to recent years.”

Gas prices usually rise at this time of year ahead of the peak, summer driving season. In 2013, prices have already swung wildly.

At one point, prices rose for 36 straight days, the longest stretch of consecutive increases in almost two years. Since peaking on Feb. 27 at $3.79 a gallon, gas prices have fallen in 29 of the past 33 days, AAA says.

The good news is AAA expects gas prices to remain less expensive than they have been in recent years, largely because oil is cheaper and refinery production is rising.

“AAA has no record of gas prices ever peaking in February, and it is too early to say whether prices may have hit a high for the first half of the year,” Ash said. “While it is possible that gas prices may surge briefly again this spring, the national average should remain less than last year’s high of $3.94 per gallon.""

 

Summing Up

 

Gas prices should keep coming down this spring, perhaps both in absolute terms as well as relative to prior year levels.

 

If so, perhaps the summer driving season will not result in price spikes.

 

And that price decline would be a virtual certainty if President Obama decides to get with the program by approving the construction of the Keystone XL Pipeline, approves additional domestic drilling, and then tops it all off by agreeing to the unlimited exporting of our abundant natural gas supplies.

 

In other words, all he has to do is what's best for America --- let the free market and free people go to work.

 

That's my take.

 

Thanks. Bob.