WDAM Viewpoint- Gas Price Drop - WDAM - TV 7 - News, Weather and Sports

WDAM Viewpoint- Gas Price Drop

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What a difference a short time can make…especially if you are talking about gasoline prices.  Typically this time of year when people are doing a lot of vacation travel prices sky rocket.  The oil companies tell us it is because of the cost of exploration, drilling and growing shortages of petroleum.  Talk of releasing some of the federal emergency reserves invariably surfaces.  And the oil companies report record profits at the end of the year.  Well, this year we see that it truly is a game of supply and demand just like everything else.  According to The Clarion Ledger on Tuesday gas dropped at one location to $2.88 per gallon.  Still not a bargain—but certainly better than this time last year…or last month.  Why…because people decided to stay closer to home and not drive as much.  When the oil companies over-play their hand and people cut back drastically on their products…they find they are vulnerable to market place pressures just like every other business.  They cut back on their prices.  Pretty transparent isn't it? 

I'm Jim Cameron—let us hear from you.