Gas prices to drop below $3/gallon - Fox29 WFLX TV, West Palm Beach, FL-news & weather

Gas prices to drop below $3/gallon

By Jana Eschbach email
Posted by Rachel Leigh email

WEST PALM BEACH, FL (WFLX)- The silver lining to the weak economy--with consumers cutting back, oil prices are now dropping to an 8-month low.

How low will it go?

"If it continues to trend, every night, down, down, down, I could see gas getting below $3/gallon in the next 30-60 days." said Gerald Donnini, of Donnini Petroleum Enterprises in Palm City. Donnini is a major distributor for South Florida gas stations.

"Gas has been over the last 30 days been coming down. And, if you look 30 days ago from now, we are down at least 20 cents on the street." Donnini said, noting for every dollar per barrel oil drops, you save 2 cents at the pump.

Prices Monday were at an 8-month low of $87.81/barrel, down from a record $147/barrel in July when a gallon of gas hit a high of $4.23/gallon in our area. 

When will you see the oil crude price translate into savings at the pump?

"You'll see that decrease, but it may be another day or 2, because I am trying to get rid of my old inventory because I paid a higher price for that." Donnini said, "I think a big part of why it went up over 4 dollars is more the speculators than in fact the demand. We all know demand was down. Now when all this specualtion stopped--and Wall Street was really driving the price up on speculation, when that all went away this thing fell back to where it probably should have been in the first place."

Oil distributors who supply dozens of local gas stations forsee the downward trend continuing and we could be at or below $3/gallon in the next month. Economists say $4/gallon was a pumped up price, driven up by Wall Street speculators. Now that the Olympics is over in China, global demand is way down as well.

Millions of Americans cut back on driving when prices spiked in July.

Lois Walker, a Port St. Lucie retiree on a fixed income could not believe it. "Shut up.. Wow! We'll get a little better change in our pockets. Greed, greed greed, and now they need us back."

 Prices at the pump already dropped on average 25 cents in the past month, with prices as low as $3.43 a gallon at the Race Trac in Fort Pierce.

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