Falling Gasoline Prices Could Help Holiday Sales

I was in New Jersey this weekend and was amazed to see gas prices at $1.89 a gallon! Sometimes reality doesn’t set in until you venture outside of the Big Apple because at the Mobile Station on the corner of the West Side Highway and Canal Street in NY, a gallon is still selling at $3.10.

The national average is $2.087 a gallon, down 50 percent from summer highs - 16 states have average gas prices below $2 a gallon.

With everyone crying about a global recession and retail sales seeing a record decline, the fall in gas prices is a silver lining. Although gas station receipts will a take a hit, lower prices at the pump will free up money for Americans to spend on basic necessities and holiday purchases. In no way will it single-handedly turn the economy around, but it will help in other ways such as reducing heating bills going into the winter season.

Comments

[ChickenLips:]

Kathy, I'm sure all the business owners are praying and hoping that you are right. That's why I took the opportunity to spend the extra cash from my gas money budget and bought myself a Nintendo Wii for Christmas. But everybody else is still getting socks and underwear.

But seriously, even though gas prices are falling, how have people's attitudes changed towards debt? Pretty much all expensive gifts ($100+ based on a middle class income) are purchased on credit. How much credit is available to splurge on Christmas, and is the credit being offered like it was in the past? Are people willing to use credit again or have we shunned it like our President? One silver lining out of this whole disaster: salespeople don't hound me to open additional credit lines every 5 minutes like they used to!

2008 Nov 17 10:31 AM

[Pipo:]

Yes, lower oil prices are actually like a tax cut. If they keep falling, lower oil might be the solution fot this recession.

In the Oil Traders blog, they see Oil going to 50 near term.

oiltradersblog.blogspo.../

2008 Nov 17 01:54 PM

[mangolfer:]

Lower oil is the brightest thing we have right now. I'm personally saving over $200 per month in fuel usage with these new lower prices....

2008 Nov 18 06:55 AM