Gas prices fell four cents over Wednesday night, and Thursday's average price of $1.42 is nearly two dollars less than one year ago.
With record low prices happening all over the nation, the one question on everyone's mind is... How low will they go? We spoke with local finance experts today to find the answer. Amarillo College Economics Instructor John Robertson "never thought gas would drop below two dollars a gallon." Now, not only is it below two dollars, but in the near future, you could be paying prices we haven't seen since the mid 90s.
Edward Jones' Bill Hall says, "You've got constant supply, you've got lower demand means lower prices and as we continue to go through this recession we could see a dollar a gallon for gas." So, are these low prices a blessing or a curse? Well, the answer is a little bit of both. Let's start with the good news. Robertson says, "If you're spending less on gasoline what that means is our disposable income has increased. We've got more money to spend on other things." And now the not so good news.
Hall says, "If this were really protracted and long term you really could see an effect on the oil business and companies could begin to lower their payrolls." If gas prices do fall to one dollar, hall says to enjoy it while you can. He doesn't anticipate it to last long. "I don't think we'll see $150 a barrel for oil anytime soon. That was probably just a bubble, but long term the price of a barrel of oil given supply and demand and historical demand for oil probably gonna be around $60 or $70 a barrel. "