August 8, 2013
The price of gas for consumers effects the total family and business overhead. The reduction in gas prices can lead to a feeling of economic recovery stimulating spending and investment. The prediction of lower gas prices on the surface is positive sign for the future. The knowledge of “Cheaper gasoline forecast for U.S. Consumers” is a sign of overall lowering of consumer good prices.
The Department of Energy is predicting lower gas prices for the remainder of the year by ten cents from the first half of the year.
UPI reported the “Seasonal increases in demand for gasoline, rising crude prices, and tighter gasoline markets in the Midwest and Northeast contributed to U.S. regular gasoline retail prices increasing from an average of $3.50 per gallon to $3.68 per gallon during the first three weeks of July. Over the last two weeks, the average price of regular gasoline has fallen to $3.63 per gallon,” EIA Administrator Adam Sieminski said in a statement Tuesday.
The EIA said crude oil prices on the international market account for about 66 percent of the price at the pump. An expected decline in crude oil prices should relieve some of the pain at the pump through the remainder of the year. The EIA said it expects an average of $3.46 per gallon for the second half of 2013, compared to $3.59 for the first half of the year.
When placing a spin on the news of gas prices lowering it supports the facilitation of a growing construction industry that leads to the reduction in material costs as well. Further, the reduction in fuel prices can have a positive effect overtime on transportation costs as fuel contracts roll off for renewal. Consider, the price of goods could also take a dive producing a few more jobs in the national pool.
The lowering of gas could trigger a sense of vitality and health for the economy. The news of cheaper gas prices can be one trigger to fuel the economy.
- Nashville gas prices down again (bizjournals.com)