Consumers Find They No Longer Have to Pinch Pennies for Gas

Memphis, Tenn. - Just in time to exhibit hope to United States consumers for the upcoming holiday season, gas prices have plummeted all over the country due to Saudi Arabia’s efforts to flood the oil market.

Gas prices have lowered to less than $3 a gallon in several states this past week.

This wide-spread change is major in the eyes of U.S. consumers because prices have not been this low since December 2010, said Time Magazine.

Chris Lafakis an economist at Moody's Economy.com, said “46% of gas stations around the United States are charging less than $3 per gallon.

Ali Etayem, 55, who has owned a gas station at Covington Pike and Raleigh-Lagrange for eight years, offered some insight into the benefits of low gas prices.

He said he prides himself on always having the lowest gas prices in the city by monitoring the prices of his competitors on his commutes to his store from his home near Collierville, Tennessee.

“The (gas) price going down is good.” Etayem said. “When prices are low, more people stop. The less I pay per barrel, the less I have to charge my customers, the better for business.”

Oil prices reached their peak in June 2014 when barrels ranged from $100 to $110 per one said Time Magazine.

“The same barrels are now $85 to $88; which dropped gas prices 60 cents since summer 2014.” Novak, managing director of energy services for the economic consulting firm Global Insight, said.

Though lower gas prices may be great for consumers, Milwaukee Business Journal suggested it’s not so great for manufacturers. MBJ said that producing oil is an expensive job. If barrel prices were to drop below $80, oil manufacturing companies would stop making profits and have less incentive to drill oil.

The Associated Press reported that Iraq has recently joined Saudi Arabia and Iran’s recent price-cutting spree. The production of oil is exceeding the demand for it. The prices must deflate to sell to exporters.

MBJ projected that prices will continue to drop as foreign countries work together to stay on top of the oil market.

Etayem plans to take full advantage of this change as his customers have. “The drop in gas prices may encourage more people to invest in vehicles.” Etayem said. “The more vehicles there are, the more gas consumers. I don’t think the oil drillers will raise the prices once they see how profitable they can be when they made the oil more affordable.”

Though some are questioning the change in gas prices, many consumers are pleased and are taking full advantage of this price cut.

Maria Sanchez, native Memphian and single mother of four has been a regular customer of Etayem’s gas station since 2005. She said she was pleased with the new prices saying it was more affordable to fill up her car than it has been in the past four years.

“I am excited for this change.” Sanchez said. “It’s much needed and this $2.33 a gallon is much missed. My youngest was still in diapers when gas was this low. I am excited to shop for Christmas now with all of the extra money I will be saving on gas if prices stay this low.” SB