Business

Gas Prices Could Hit $1 a Gallon

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While recent economic news has been grim, we can at least take a little solace that gas prices have plummeted. Currently, we’re more likely to see $1 a gallon gas than $4 a gallon gas in the immediate future.

Since the price of gas peeked last July, prices have dropped 72% with a 25% drop in just the last week. And there’s no indication that we’ve hit the bottom. January gasoline futures are currently at 90 cents. If you’d claimed last summer that, by Christmas, we’d be talking about gas priced by the cent, you’d have been branded the biggest kind of fool.

Unfortunately, this precipitous decline in gas prices is being fueled by the large job losses. Fewer people working means less driving in specific and less economic activity in general. That’s hardly a welcome solution to high gas prices. For many Americans, less pain at the pump is not going to offset the pain of job loss.

But at least we don’t have to worry about a recession and high energy costs. That’s some comfort in these hard times.