Gasoline Demand and Prices, a Consumer Overview.

Since the middle of this year, gas prices have taken a tumble. At a high point of over $4 a gallon in the summer, most averages now are under $2. Is this a blessing or result of an economy still dropping to its knees? Consumers have gotten into the habits of conserving fuel in anyway they can and don't seem to be reverting. This has taken a toll on the market. The lowers prices still have yet to produce excessive consumption. Other factors such as the slowing economy are at work.. The trend almost seems as though the price of oil based fuels will continue to fall.

Consumers all over America were outraged at fuel prices above $4 this year. Many people endured serious life changes such as staying at home, selling off cars and trucks that didn't get the best mileage, and consolidating their trips into one a day at the most. Many people are still very bitter about the subject as evident on the Gas Buddy web site. Comments show that even with the significant price drop, consumers are still outraged and plan to be for sometime. The majority of consumers now have a bitter taste for oil that will remain for years to come.

Many people on the site have also commented about the slowing economy. Honest answers and insight are present in the many comments left in regard to today's news story about the demand. Many sources predicted that demand for the Thanksgiving holiday would get more Americans back on oil. One person explained their story and told of how that they were unemployed and couldn't afford gas regardless of the price drop. Other angry consumers vow to keep conserving and encourage others to do the same. Even in my hometown, with the prices falling, the pumps at every station remain open.

Consumers who have evaluated the situation paint a bleak picture of things to come. A consumer from Wisconsin replied "I conserve ALOT now, my car got repo'd" to the price situation. Demand drop due to unemployment has skyrocketed leaving what demand there was from work related transportation to a minimum. The failing economy is leaving a vast number of consumers with nowhere to go, and some cases nothing to get them there with. Even some people who are still working don't wish to buy gas unless it is needed. These events occurring behind the lack of demand for gas have also spilled over to the lack of demand for cars, making the auto industry a target for bankruptcy.

Gas prices after the Thanksgiving holiday have already begun to plunge. In the Toledo, Ohio area, prices rose to nearly $1.80 on average and are now $1.57 at some stations. Other similar fluctuations are occurring in many places around the country. The voices of the consumers state that the demand is in trouble. As more people become unemployed, more businesses close, and the economy continues to downturn, the lower prices are not a positive thing. The upcoming Christmas holiday is already on the minds of consumers. A price spike for the holiday, could anger consumers to the point of minimal fuel consumption.

At this point, I believe that the United States economy is in serious trouble. The comments posted by consumers are not presenting a faithful, positive direction. The greater demand base for oil in the US has been destroyed. I would expect prices to keep falling in the near future. The consumer-based demand for alternative energy and mass transit is beginning to rise which I believe is going to put another dent in oil demand. Habits are hard to break, and the oil companies are learning now that our new conservation habits are not going away anytime soon!

SOURCES

http://www.reuters.com/article/marketsNews/idUSN0227082920081202

http://www.toledogasprices.com/news/US_gasoline_demand_upprice_below_2SpendingPulse/9023_340826/index.aspx

http://www.toledogasprices.com/