The crazy incline in inflation that was seen by the US during the aftermath of COVID-19 was a very hard thing to deal with. The place where most people probably saw inflation the worst was in the gas prices. In June of 2022, gas was at an all-time high reaching over $5 a gallon, but we have seen a complete 180 when it comes to inflation and the now dropping of gas prices. The experts say that gas should continue getting cheaper and cheaper because of the weather patterns giving us an increasingly warmer winter thus cutting the demand for heat. Now, the national average for gas prices at the moment is sitting around $3.13, with over half the country having an average of under $3 a gallon. The experts believe that even the national average may soon drop under $3 as well. As an everyday driver, I am ecstatic about this, especially being a young adult with minimal income. Cheaper gas will cut down the majority of the spending in my life, allowing me to put money towards other things/activities.
https://www.usatoday.com/story/money/economy/2023/12/12/why-are-gas-prices-going-down/71898654007/
I agree with the motivation to purchase other goods if gas price decreases. A warmer winter this year made it possible for this deduction. However, whether gas prices be below $3/gallon by the end of this year (when election finishes) will remain a question to me because there are many factors contributing to gas changes: weather, production, or technological advances.
ReplyDeleteIt is always nice to hear that as a student. Having more disposable income also leaves for much more room to spend in other areas, thus growing the economy in other areas. Hopefully this trend continues.
ReplyDeleteAs a Californian, 3 dollar gas is unheard of. We actually have the highest gas and during the pandemic I saw $7/gallon prices. While I am glad that gas prices are going down, it's important to acknowledge that it is because of more production. Economically, this is great because more supply can lower prices and reduces the probability of a deficit and increased prices. But from a conservationist, this is bad because it is bad for the environment and it would be furthering the effects of climate change in the long term.
ReplyDeleteThe national average dropping under three dollars a gallon will hopefully reduce other costs like shipping and food delivery. Any service that utilizes gas as well as drivers will have that money saved from gas to place elsewhere, which will surely lead to other economic shifts commercially.
ReplyDeleteI wonder if we will see an uptick in environmental pollution from automobiles as a result of the lower price of gas. While it is great that gas will be more affordable, I wonder if the lower price could ultimately lead to worsening environmental conditions that become even more costly in the long run. In general, we definitely are facing an issue of either paying now or paying later for the consequences of pollution, and it appears we have collective chosen to pay later.
ReplyDeleteBesides COVID-19, what were some other major influences that caused such a large jump in gas prices specifically?
ReplyDeleteI personally feel that gas prices and how they are perceived is overstated and blow out of proportion. Compared to the amount of purachses, expenses, and other consumer consumptions... gas is more than likely one of the lesser relevant factors to a family's standard of living (now more than ever with the automobile industry moving towards more electric cars).
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