Gas Prices Expected To Take A Plunge

Gas prices are set to take a tumble in the next few weeks, with some estimates saying that they could drop as much as 50 cents or more by late November.

Gasoline currently averages $3.69 across the country, but many experts believe that the price will fall to $3.35 or lower by Thanksgiving, reports USA Today. Tom Kloza of the Oil Price Information Service, stated:

“Most of the country is heading appreciably lower the next few weeks.”

Kloza added that wholesale prices in some key markets have already dropped from as high as $4.35 per gallon to just $2.71 per gallon. Pump prices typically lag behind big wholesale drops, but Kloza predicted that retail prices will sink five to 15 cents per gallon each week for the next three weeks.

The drop could help to boost consumer spending and may even influence next month’s presidential election, where gas prices have been a source of criticism for Republicans.

US News & World Report notes as well that several key battleground states, like Ohio, Pensylvania, and Wisconsin are enjoying big drops in the price of gas. Brian Bethune, chief economist at Alpha Economic Foresights, stated:

“Certainly, lower gas prices are helpful in terms of consumer spending by increasing disposable income. And if prices come down at a rapid rate in the next three weeks, that would tend to help the incumbent. It may not be logical, but if people see problems with the high cost of food or gas, it’s the president who tends to get the blame.”

Gas prices are even lower in eight of the 11 hotly contested states, while they are higher in the remaining three. While gas prices nationwide are about 25 cents higher this year than they were this time last year, many voters seem to understand that gas prices are determined more by the level of conflict in the Middle East, demand in places like China, and other factors that the president has no control over.

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