Effects of Lower Gas Prices?

Discussion in 'Energy & Fuel' started by John Stone, Feb 12, 2015.

  1. John Stone

    John Stone Member
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    I was just wondering if anyone has been seeing any interesting effects of lower gas prices in their area? Besides the increased ability for people to travel, are things not obviously gasoline related getting cheaper? Theoretically food prices should be going down since a large component of most food prices is transportation costs. Maybe there are more.
     
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  2. Ken Anderson

    Ken Anderson Veteran Member
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    I have not noticed any positive effect on food prices. My guess is that, since we're used to paying what we're paying, they are taking that as profits, in similar fashion to the group of legislators who have urged a rise in gasoline taxes on the same theory, that we were used to paying higher prices so they may as well get it.
     
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  3. Yvonne Smith

    Yvonne Smith Very Well-Known Member
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    I have not seen the price of anything go down because fuel is lower now. It seems to be just the price at the fuell pump that has changed. Many other things are petroleum-based; but the price for thos has not changed. A quart of motor oil is still the same price as it was before the gas price dropped, as an example.
    Plastics are made from petroleum; but the price for plastic items seems to be getting higher , not lower.
    What I think will happen , is that they will add the taxes to gas prices, and then they will raise the price of a barrel of oil back up again; and we will all be paying even more for fuel than we were before. That seems to be how it usually goes.
    They tell us that they have to raise prices because of a shortage of the item, or transportation costs, or whatever reason works.
    Then, the supply goes back to normal, but the higher prices always stay in effect. I am thinking that this is a similar ploy.
     
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  4. Susan Long

    Susan Long Active Member
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    I haven't seen other items reduced in price, but I really have enjoyed lower gasoline prices! I have celebrated by taking digital photos of the price (especially when it was below $2.00; the lowest I saw was $1.91). :)
     
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  5. Pat Baker

    Pat Baker Well-Known Member
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    I haven't seen any items reduced in price due to the lower price in gas. I did see on the news that the price maybe going up soon, it was nice while it lasted.
     
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  6. Joe Riley

    Joe Riley Veteran Member
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    The independent truck drivers are getting a well deserved break on fuel costs.
     
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  7. Ken Anderson

    Ken Anderson Veteran Member
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    Heating oil has gone down considerably. Last winter wasn't as bad as the year before, but we don't use much of it during the summer. You are right though, @Yvonne Smith -- although they use the rising costs of fuel as a reason for raising prices on everything, these prices are a lot slower going down when the price of oil lowers.
     
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  8. Corie Henson

    Corie Henson Very Well-Known Member
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    The gas prices have been on a price lowering spree in the recent years. From a high of 54 pesos per liter, it was down to a low of 39 pesos early this year while now it is standing at 43 pesos per liter, that's $1. But I don't see any effect on the users although a civic group is suggesting a decrease in fare for public transport. But the motion did not materialize because the organized group of public transport drivers and owners are quick to the draw in blocking such moves.

    Personally, our gas expense has noticeably gone down since we use the credit card for gasoline. The monthly billing had considerably gone down as an effect of the lower price of gasoline.
     
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  9. Sheldon Scott

    Sheldon Scott Very Well-Known Member
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    Another effect of lower gas prices..... no COLA for social security. Then the price will go up again.
     
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  10. Ken Anderson

    Ken Anderson Veteran Member
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    Now that gas prices are down, state and federal officials are looking at raising gasoline taxes, which of course would not be lowered when prices start climbing upwards again.
     
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  11. Corie Henson

    Corie Henson Very Well-Known Member
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    What a coincidence. I was watching the news a while ago and it said gas prices will increase this week - from 1.50 to 2 pesos per liter. That's quite an increase because the usual price increase is just centavos or 1 peso to the maximum. And since the impending price increase of gasoline is already announced, expect motorists to line up in gas stations to avail of the prevailing price.

    But in fairness to the gas dealers, they are now basing their selling price in direct relation to the world prices. At least consumers like us know the reason for the increase or the rollback. Yes, price rollback is not rare, we had about 3 rollbacks this year.
     
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