Real Price of Gas Approaches Historic Record-Low?
Gas is now available in Kansas City for as low as $1.47 per gallon (updated), and the average retail price for gas is now $2.07 per gallon. Using real gas prices from the EIA (in November 2008 dollars), the chart above (click to enlarge) shows how today's gas prices compare to past prices.
The last time real gas prices (national average) were as low as $2.07 per gallon was almost four years ago in January of 2005, and the last time real gas prices were as low as $1.49 per gallon was almost seven years ago in February of 2002 (see chart above). Gas prices in Kansas City are within 27 cents per gallon of the lowest-ever real gas price of $1.21 in February of 1999.
The drop in gas prices from $4.12 in July to the current $2.07 per gallon will generate annual savings of almost $300 billion for American consumers and businesses (each $1 fall in gas prices = $142 approximately billion annual savings). Talk about a tax cut!
7 Comments:
it's sure nice to be paying less.
but, looking at the chart, the rapidity of the collapse in demand is astonishing and not just a little disturbing.
for another astonishing drop in demand and price, check out the baltic dry index. basically, this is the cost of shipping raw materials to places like china. can you say "re-coupling"?
Soooo.... how are the low gas prices and the low baltic dry index not totally awesome for the economy? This is GREAT news!!
Exxon's 4th Quarter results ought to be interesting. Wonder if we will continue to hear about "wind fall" profit taxes?
My wife saw $1.45 here in KC today.
@anonymous 4:36
lol, how does reporting facts make him an idiot?
"Im [sic] amazed this guy still posts. you should shut your blog down professor...youre [sic] an idiot."
Thanks for the contribution, anon. Let me see if I get this right... When the main stream media reports on rising gas prices, then sensationalizes and spins the story to fit their agenda, that's ok. When an economist (or anyone else for that matter) presents data on falling gas prices which runs counter to the MSM spin, he's "an idiot". That about sum it up? Oh, by the way, who has more credibility here? The professor who maintains the blog in a fully open and transparent manner, or the poster who does so as "anonymous"?
So, I guess it's a wash! We save $300 billion on gas and turn it over to the FDIC to hand out willy-nilly.
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