Wednesday, November 05, 2008

Gas Prices Fall Below $1.75 Per Gallon in Houston; Consumers Will Save $270 Billion Annually

Gas prices have fallen below $2 per gallon in so many states now, I figured it's not news any more, and it was time to move on to a new benchmark.

So, here some news: Gas prices in Houston fell below $1.75 yesterday at some stations (see chart above), and are the lowest in almost two years (see chart below, for average Houston prices).

Moreover, the sharp decline in average prices from the peak of $3.94 in July to $2.04 per gallon in Houston over the last four months represents an annual savings for consumers of more than $270 billion (see calculation here), compared to the outcome if gas prices had stayed at $3.94.

10 Comments:

At 11/05/2008 5:31 PM, Anonymous Lars said...

Not enough to offset $trillions in new taxes and investment losses.

 
At 11/05/2008 6:13 PM, Blogger Jason Gillman said...

I predicted this in March.

Now.. the rabbit out of the hat trick.. "nothing up my sleeve"

Gas at $5.00 / Gallon by March 2009

UNLESS we see a really GRAND filibuster by the remaining Republican Senators.

 
At 11/05/2008 8:13 PM, Blogger Andrew said...

Hi Mark,

I'm emailing you in regards to a followup email I sent you a month ago in response to a partnership, have you had a chance to think about it?

If you have any questions or would more information, please advise me and we can go from there.

Kind Regards,
Andrew Knight



Website Manager
Banking & Finance Division

Online Marketing Group (OMG)
p: (07) 3368 2666
f: (07) 3368 2670
e: andrew.knight@omg.com.au
w: www.omg.com.au

 
At 11/05/2008 8:37 PM, Blogger like such as said...

oh that's classy, andrew.

 
At 11/06/2008 3:54 AM, Blogger OBloodyHell said...

> Gas at $5.00 / Gallon by March 2009

Jason:

1) Gas at $6 by March, 2010
2) The recession which is sure to come in the next 6 months* will prevent prices from rising too much unless there is also substantial political instability by that time thanks to Russia, Chavez, and Ahminajad knowing that the worst Obama will do to them is a "stern talking to".

So I sort of agree with you but not as to timing. The recession lowering demand, along with any remaining glut, will stop it from going back upwards quite that fast.

----

* (which will still be on in 2010, but by then, Obama's energy policies will have made up for the lowered demand of a recession and gone on to screw things up directly.)

 
At 11/06/2008 3:59 AM, Blogger OBloodyHell said...

> oh that's classy, andrew.

Aw, come on. What are you, predjudiced against idiots and spammers?

(Lest you claim that is redundant, all spammers are idiots, but not all idiots are spammers*... it's not a symmetrical equivalence).

---

*After all. Someone has to reply to the spam... :oP

 
At 11/06/2008 4:05 AM, Blogger OBloodyHell said...

By the way. Note that Andrew left us all his e-mail address. I think everyone should sign Andrew up for at least one spam campaign in appreciation. Go to it!

 
At 11/06/2008 5:26 AM, Anonymous Anonymous said...

Yes the bubble burst. One more to go for this sick outsourced, consumer spending, service based economy to go. The US treasuries market, Tck-Tic-Tic.

 
At 11/06/2008 1:01 PM, Anonymous Anonymous said...

Gas prices will continue to fall as long as the unemployment rate increases and we have less employed daily drivers on the road.

Let's have a party....we have lower gas prices, less drivers on the road and less people working !!!!!

I hope Obama the socialist can do a good a job as George W. Bush !!!!

 
At 11/08/2008 2:06 PM, Blogger Ted Cossins said...

I'm not against stats per se but with energy prices bouncing up and down from one day to next, what's the point of annualizing these so-called "savings"?

@jason: excellent! I'll hold on to USO!

@ohbloodyhell: or maybe I won't!

T.C.

 

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