One Bright Spot: Gas Prices Lowest In 5 Years
The average cost of a gallon of gasoline nationwide hit $1.75 Sunday, the lowest since 2004 according to CNN Money. That’s less than half of the all-time high of $4.11 set this summer, a stunning reversal. A slowing global economy and bleak outlook for demand have helped put a dent in oil prices but no doubt a lack of access to credit by futures speculators played a major role as well.
Residents of Cheyenne, Wyoming have lucked out, paying a nation-leading $1.46 per gallon while prices in Anchorage, Alaska are still a relatively-expensive $2.54 per gallon. While the reported Atlanta average is $1.72, I paid just $1.56 earlier tonight in the southern suburbs.
Low Prices To Stall Conservation Efforts
As I wrote in an earlier post on the downsides of falling oil prices, lower gas prices are a mixed blessing. While lower prices at the pump will help stimulate economic output in the short run, the long-term consequences are not so positive. Delayed adoption of alternative energy sources and prolonged environmental destruction are but two consequences.
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Nice blog. I agree that the decline in gas prices is a short term benefit but it is probably the worst thing that can happen long term. We are not as focused on decreasing our dependence on foreign oil because of lower prices.