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Will Gasoline Prices Decline Significantly?

posted by Erika Miller, Correspondent at 5:58 PM on 02/06/08

Photo of Erika MillerAAA says gasoline prices could fall 50 cents a gallon by spring. Forgive me for being skeptical.

After all, high gasoline prices haven’t altered consumer driving habits in the past. But AAA says what’s different now is worries about recession. The motor club says consumers are nervous about losing their jobs -- so they’re trying make fewer shopping trips. It says businesses are making fewer sales calls and short haul deliveries.

AAA is a reliable source. And I’m sure there are some businesses and consumers changing their driving patterns. But I can’t think of any in my neighborhood, off the top of my head.

I also have to say, most of my friends don’t view filling up their tank as discretionary spending. Like me, when they need to cut costs, they do so in other areas. I also haven’t seen any businesses discourage (or cutback) deliveries.

It’s quite possible I don’t have an accurate read on what’s happening. As we all know, what happens in Manhattan is rarely a good bellwether for the US as a whole.

Please tell me about the situation in your community. Are you cutting back on unnecessary trips? Do you carpool or take public transportation more?

1 Comments.
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I do not see people in my neighborhood cutting back on driving. However - some are purchasing more fuel efficient vehicles and in our family we are trying to be efficient with local driving - fewer shopping trips etc. Overall then a small but meaningful reduction in fuel spending.

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