Experts say dropping gas prices may be short-lived

by Sarah Rice (srice@wsbt.com)

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Prices dipped over the weekend at many area gas stations. (WSBT Photo)

Prices dipped over the weekend at many area gas stations. (WSBT Photo)

By WSBT News1

SOUTH BEND -- Stations across the area are keeping busy as gas prices continue to drop. WSBT saw some places as low as $2.84 a gallon and experts say drivers should take advantage of it.

For college student Kayley Havener, filling up can be down right frustrating.

"It's about a 40-minute drive from work to school. So I was putting in a little over $120 in gas every week," said Havener.

But not anymore.

"I'm excited that I only had to put $19 in my car," said Havener.

Oil prices plunged to a 13-month low Friday. This caused gas prices across the area to dip below the $3 mark.

"I can't believe it. It's amazing. Thank goodness," said driver Kris Sieko.

So what's behind the drop in prices? Saint Mary's economics professor Jerome McElroy points to the struggling economy.

"Current prices of oil are influenced by current future expectations. And they see this U.S. meltdown of the stock market going global as it has happened. And as a result they're concerned about a global recession and that means lower demand for all kinds of commodities," said McElroy.

But McElroy doesn't think prices like these will last for long. He says low crude oil prices may discourage companies from drilling because it's expensive.

"In the short run this is good for the consumer. But in the next couple of years when demand picks up and the economy gets going again we're going to have the shortages like we did last year and the beginning of this year," said McElroy.

But for now, many people are taking advantage of the savings.

"It's leaf season and it runs right into snowblower season. So we're getting them all filled so I don't have to worry about it for the rest of the year," said driver Ken Kwieran.

And drivers like Havener are leaving the pump a little less frustrated.

"I can actually afford to go to class now," said Havener.

Wednesday, Oct 15 at 11:30 AM N wrote ...

My beef with this is that it took years, literally, for prices to drop below $3.00. Now that they are there, everyone knows it is only temporary, and sure enough, when the time comes to raise the price, it wont take years to go back over $3.00. They'll most likely raise it almost $1 OVERNIGHT and then we have to wait forever for it to drop down again. Jump up, trickle very slowly down. Its so frustrating and unfair.

Wednesday, Oct 15 at 7:26 AM Thomas Nawrocki wrote ...

Someone needs to tell McElroy that we never had a shortage of oil this summer, we had a specualtaive bubble. No consumer ever had to struggle to buy a barrel. Oil will hit 50 and when the economy comes back it will settle around 75 to 80 dollars a barrel. Saudi Arabia and Brazil are bringing 5 million barrels a day online in the next six months alone.

Tuesday, Oct 14 at 4:57 PM The Realist wrote ...

Of course deep down we all know this wont last. Main reason being.. greed and every politician has his hands dirty with oil. As for 'shortages' yeah i believe that about as much as if someone told me Bush was a bright man. Also to quote from above; "may discourage oil companies from drilling cause its expensive"... and you did what with the last $XXX Billion you made raping the country? I rest my case. Its just good to see the prices drop for at least a little while.

Tuesday, Oct 14 at 2:45 PM cindy wrote ...

To nobody wrote, I am very sorry that I offended you. And as a matter of fact, I work at a gas station, third shift on my feet all night and most of the day, so yes I know what it means to walk. And our gas prices are always the last to go down, and we get to hear about it all the time. Our cigs are the most expensive in the area also. $6.10 marlboro. $6.30 newports. & $ basics $5.50. And these are our most poplar ones. And to Wow, he is smart and yes I'm keeping him, Thanks.

Tuesday, Oct 14 at 2:02 AM Jerry wrote ...

Well you know the prices should stay down for a while longer than you may think unless someone wants our economy to fail. If prices rebound too quickly our economy will crumble. It is true that they what the gas to be $5.00 a gal but reality is that our economy would collapse.

Monday, Oct 13 at 9:23 PM Anonymous wrote ...

the prices of gas are coming down because your man Bush wants you to vote for his man McCain for president, and this looks good for him. Once the election is over- watch out...there go the gas prices skyrocketing again.

Monday, Oct 13 at 8:15 PM Lucy wrote ...

It took experts to figure out what we non experts knew all along. What a waste of ink.

Monday, Oct 13 at 8:02 PM Mike wrote ...

Do people really believe that gas prices are "just falling" because of lower crude prices, lower usage, or more availability of gasoline? The American consumer has once again been duped by a conspiracy of big business and government bureaucrats into believing the lies given as explanations by the media.

Monday, Oct 13 at 5:58 PM Biff wrote ...

Why, of course it will be short lived! Christmas is coming! Gotta pay those oil C.E.O's the big bucks. We are stupid consumers and not one of us has it figured out. Right? That's why they won't drill for new oil. They just keep lying to us.

Monday, Oct 13 at 5:32 PM not surprised wrote ...

with the election coming up and BUSH has made his money in oil now.the price is going down.if the price all around town is below $3.00 then why was it still $3.29 in south bend on ireland rd. by miami st.

Monday, Oct 13 at 4:09 PM Anonymous wrote ...

The student said, while talking on her cell phone, and listening to car stereo and countless cds, and planning what to watch on cable tv tonight while playing on her high speed internet... Too bad we can't power turbines with b.s. The earth's energy problems would be over forever.

Monday, Oct 13 at 2:08 PM chris wrote ...

how bout the so called experts shut off and let the price drop in gas run its course...its the experts that show concern and then the prices go up again...its the experts who get paid way too much for their opinion that don't have to worry about the gas price that show concern and then the prices go right back up...shut off for once

Monday, Oct 13 at 10:55 AM ANON wrote ...

Don't get me wrong....it is a positive thing seeing gas go down, but think about it, have all of us learned a lesson with the economy and all or are we going to continue to WASTE. Everyone wants it now! America has gone to the "dogs".

Monday, Oct 13 at 9:08 AM Just me wrote ...

Right on cornfusion! You have pegged it, the drive-by media is responsible for the fuel prices plain and simple, and bravo for the remark about Obama being elected because of it. The public depends on the media to tell them what to do, NOT for news. Sadly the number of free thinking people have deminished rapidly in the past 20 years.

Monday, Oct 13 at 8:39 AM still getting screwed wrote ...

They have you all brain washed. You think this is a deal. Last time oil was at this price we were paying under $2. $165 to be more precise in this area. We need to keep hounding our Congressmen to do something about this price gouging.

Monday, Oct 13 at 7:34 AM jl wrote ...

hey cindy i will take you for a walk if you want that way yor boyfriend can stay at home and get his mind together

Monday, Oct 13 at 7:32 AM jeff wrote ...

in michigan cit today at 5 am the price is 3.119

Monday, Oct 13 at 3:46 AM Guy from the department of redundancy department wrote ...

Just what exactly qualifies any of these "experts" to be experts. Are these the same experts who didn't see this coming, or are these the Experts who said that gas would be over five bucks a gallon at election time? I'll try to find an expert to see how I can get a job like that.

Sunday, Oct 12 at 11:04 PM M. wrote ...

I may be saving at the gas pump, but I noticed a lot of groceries were higher than ever today at Meijers. What I save in one place just ends up being spent in another place. No winning, I guess.

Sunday, Oct 12 at 9:50 PM Steve wrote ...

Hmmmm...oil companies have made record profits for the last couple of years. Now, that's not sales that is "profits", and as stated in the article they "won't drill because it is expensive". Awwww...poor greedy twits! Use those record profits and drill baby drill!!!

Sunday, Oct 12 at 8:19 PM jac wrote ...

Listen to what they have done. We are now conditioned to believe that $2.80 to $3.00 is a good price. This is not a good price. The want Americans to back off their demand for a new energy plan and keep us dependent. Keep emailing your congressmen demanding energy independence with diversified fuel sources.

Sunday, Oct 12 at 7:07 PM wow wrote ...

HEY CINDY: keep him, he sounds pretty smart!!!! @ least he's lookin @ YOU.

Sunday, Oct 12 at 6:05 PM Mitch wrote ...

To Todd...they will be back up there sooner or later..you have absolutely no control over it. Everybody is being stupid and running out to fill their tanks. Gas prices will rise soon because now there is a lot more demand. If people had enough sense to take it easy the prices would stay a while.

Sunday, Oct 12 at 6:04 PM Ken Donohue wrote ...

I hope the prices will go even lower than this. We used to pay 1.50 a couple years ago and now because of the recession it is a little lower. But wait till everything else goes again and the economy recover. The prices will shoot up again and we will toil and go to work 2 shifts like I do and many of my coworkers are doing right now. With only one shift is not enough to pay all the utility bills and the private education my children have to do with a lot of things. I hope the prices will go even

Sunday, Oct 12 at 5:39 PM sofia wrote ...

i just hope that America can find a better alternative than foreign oil, bc if we don't, we're never going to get out of this situation. we need to become less dependent on the foreign oil.

Sunday, Oct 12 at 5:19 PM Rob wrote ...

PLymouth is the lowest for gas prices. All Plymouth gas stations not just walmart. SO wht is SOuth Bend so slow to drop to Plymouth levels? Higher county taxes?

Sunday, Oct 12 at 4:52 PM Todd wrote ...

Us consumers finally beat these stupid idiots we have changed our way of driving see what happens again if it goes up to $4 again try us.

Sunday, Oct 12 at 4:49 PM nobody wrote ...

cidy, have u ever hurt of walking. Don't use god for bid.

Sunday, Oct 12 at 3:55 PM cindy wrote ...

I don't drive, but I still get frustrated myself because if gas prices are high my boyfriend don't want to go anywhere and we sit at home looking at each other. And god forbid we go for a walk.

Sunday, Oct 12 at 3:48 PM plymouth lowers again wrote ...

Plymouth is now 2.59 at the wal mart they was changing as i was on my way home. good news. now clue anyway else except for family express which is at 2.60

Sunday, Oct 12 at 3:16 PM no expert wrote ...

ah yes the experts say this is short lived, if i remember right the experts also said we'd "NEVER" see gas below $3.00 again. take what these idiots say with a grain of salt and live your life as you can.

Sunday, Oct 12 at 2:54 PM even cheaper still in plymouth wrote ...

I don't think the prices in plymouth have gone up...it's only 2.62 at walmart and 2.65 pretty much everywhere else.

Sunday, Oct 12 at 12:48 PM elw wrote ...

Gas is not cheap at just under $3. It is just cheaper than at just under $4. They are still making billions.

Sunday, Oct 12 at 12:21 PM Joe wrote ...

I thought all Americans were created equally. How stupid do these so called economists & pliticians think we are? As soon as the upcoming farce of an election is over we are doomed! Gas prices will sky rocket, taxes will increase, and we will be in dire straights with "socialized" medicine. You'd better hope that you never getsick, as you will not be worth saving. Wake up everone & quit allowing the pliticians 2 ruin your life & future.

Sunday, Oct 12 at 12:10 PM Hey sheep wrote ...

After reading the ludicrous, backed by nothing, comments on this blog, I have to say: GET READY. When the govt. prints more money (like 700 billion) and begins to dump it into the money supply, EVERYTHING will go UP! It's called inflation, when you print money that is not backed by anything, everything costs more, a loaf of bread, a gallon of gas, a can of soup. LOOK OUT AMERICA, you are in for a BUMPY ride. Prepare NOW, or keep watching your american idol. But it's coming. INFLATION-BIG TIME.

Sunday, Oct 12 at 11:24 AM shoppy wrote ...

Simply greed! Those who have will never have enough. As long as they contribute to politicans campains thats the way it will stay

Sunday, Oct 12 at 11:13 AM ron wrote ...

Just hang-on. Investors have not even started selling oil stocks yet! 1980's, gas dropped back below $1.00 gallon. Have a great Day!

Sunday, Oct 12 at 10:15 AM Anonymous wrote ...

I just wish all the talking heads of these econmist would shut up. They are adding fuel to the fire. I swear every time one opens his mouth, everything goes south.

Sunday, Oct 12 at 9:48 AM Abe wrote ...

I hope this time we have learned our lesson!! But usually we don't!! Now congress will believe we do not need to drill here now and not expect the rest of the world to do what we won't!! Pretty selfish of us I believe. I think the experts are wrong on this one. They will still drill were they can because demand will go up and so will price. It would be just like money in the bank.

Sunday, Oct 12 at 9:15 AM Anonymous wrote ...

This is simply a ploy on the gas companies, since the economy is so bad, they know the government is looking at everything to make it seem like they are helping the general public, and the gas companies don't want them looking too close to them to see how bad they are screwing us....

Sunday, Oct 12 at 9:10 AM wow wrote ...

"short lived" means november 5th. use your vote and clean the dance floor before the dance.

Sunday, Oct 12 at 8:58 AM Sporty wrote ...

Low prices will discourage drilling? And has drilling helped lower prices at all? Heck no! So the point is moot completely. They drilled,we had high prices anyway. It's all such a scam. Thank God it's stopped for the time being. They'll figure out a way to screw us soon once again so enjoy while you can....there will be some excuse to raise oil prices,that we all know. 'Everyone's buying snowblowers,so oil has gotta rise...' some such nonsense....

Sunday, Oct 12 at 8:55 AM Reread, Todd wrote ...

He's not hoarding gas. He was saying he wouldn't....you take it easy.

Sunday, Oct 12 at 8:43 AM Well wrote ...

Prices started going up in Plymouth, this morning. 20 cents.

Sunday, Oct 12 at 8:15 AM Treb wrote ...

Easy there Cornfusion, but I do agree that it always seems to be gloom and doom in the media. We consumers steer these huge companies like oil, auto, etc... a lot more than we think. Oil prices are falling because we can't afford to buy it. American automakers are going to turn out cheap electrics, house prices are falling to where they should be. Don't screw with the consumers!!!! Next we need to stop buying all foreign products.

Sunday, Oct 12 at 8:01 AM joe mi wrote ...

just wait it is going to get worst the down fall is just starting GOD BLESS US ALL

Sunday, Oct 12 at 7:51 AM Cornfusion wrote ...

No Todd, You don't understand, you poor ignorant innocent. The media gods have spoken! So they say, so shall it be! Why do you think Obama will be our next president? BECAUSE THEY SAY SO! Why do you suppose utilities will be at all time record highs this year? BECAUSE THEY HAVE TESTED THE MARKET FOR THE CEO's AND DISCOVERED THAT WE WON"T LIKE IT BUT WE"LL LIVE WITH IT! Why do you think every time a meteorologists says we're going to get 6' of snow Martins can't keep toilet paper on the shelves?

Sunday, Oct 12 at 12:23 AM Todd wrote ...

Hello...if everybody starts hording it, the price will go back up as the demand has dramatically increased. Just take it easy.

Saturday, Oct 11 at 11:33 PM Cornfusion wrote ...

YES!I THINK I SEE IT! BETTER NEWS, IMPROVEMENT, HOPE!QUICK WSBT AND ALL YOUR MEDIA COLLEGUES,STOMP ON IT! What is the purpose of throwing a wet blanket over dreams that are a mere blink away from becoming nightmares? Is this a public service? Do you think we're going to run out and hoard gas? Fill up all our mason jars? I for one intend to do all the driving I had plannd on doing between now and Christmas now so it will cost me less!Oh by the way, we're all gonna die one day too, have a nice day

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