Aug 1, 2008 5:10 pm US/Eastern
Lower Prices Have Drivers Flocking To Pumps
PHILADELPHIA (CBS 3) ―
Rising gas prices that soared well above the four dollar
mark have troubled drivers for months. However, a drop in the prices for 15
consecutive days has sent drivers flocking to the pumps.
"Whenever I see the prices drop of course I go out
and fuel up," said Sydney Stuart of Mount Airy.
According to AAA, fuel prices have fallen for 15 straight
days, with regular unleaded gas now at $3.89 a gallon nationwide.
"I actually drove all the way up here from Mount Airy
just to fill up, they're still at $4 or a little above in my
neighborhood," said Stuart.
Ironically though, people rushing to the pumps when prices
are beginning to fall may not be the best strategy. Ross DiBono of the
Pennsylvania Gasoline Retail Association hints that waiting for prices to fall
even lower might make more sense.
"In a down market if it's $3.89 today, tomorrow you
might buy gas at $3.87 or $3.85," says DiBono. "So the theory is, in
a down market you wouldn't want to fill up(right away)"
Oil industry experts speculate that prices will continue on a downward spiral for
now at least as long as drivers continue doing what they're doing, which is changing
their lifestyle. Driving slower and driving less, essentially forcing demand
down.
"Finally
people have changed their habits and demand is down, which causes inventory to
back up. When the inventory backs up the refiners will lower their price to
sell it and that's what's happening now." explains DiBono.
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