Lower gas prices a result of slow economic recovery, experts say - KWWL - Eastern Iowa Breaking News, Weather, Closings

Lower gas prices a result of slow economic recovery, experts say

Posted:

IOWA CITY (KWWL) - As usual, we saw gas prices go up around Memorial Day this year. But now they're on the decline, and industry analysts say it's closely tied to the nation's economy.

News of the nation's economic recovery has been mixed lately. With experts now saying it will be slow going, it seems people are tightening up on gas spending, at a time of year when that spending is usually at its highest.

"I try to cut back, I guess on the weekends and taking random trips on the weekends," said Paige Knevel of Marion. "And going to see my friends out of town."

Knevel noticed gas prices have fallen steadily the past few weeks. But it hasn't changed her thriftiness at the pump.

"Now that I've seen gas at four dollars a gallon, I have become more conscious of it."

The Iowa Office of Energy Independence has been monitoring the trend, according to spokesperson Jessica Zopf. "Any news that has to do with job numbers has translated into pricing trends."

Zopf tells us for at least the next several months, the price of oil will depend a bit more heavily than usual, on the state of the U.S. economy.

"People really aren't going out and buying fuel. They're not traveling as much over the summer months. So that demand is less than what we've seen in previous years."

However, many consumers aren't paying much attention to the recent price drop. Gas in California, according to Oscar Feltner, is still more expensive than in the midwest.

"This is the first time I've traveled this far in seven years," he said.

Shaun Huff is just sick of the roller-coaster costs, and the fact that a gallon of diesel is so much more than a gallon of unleaded. He drives a large diesel-using pickup for his job.

"I can handle $2.45, but it never stays the same," said Huff, pointing at an electronic fuel billboard. "Yeah, it comes down, but three weeks ago, it was 25 cents higher."

Unfortunately, for folks like Huff, it seems to be an up and down ride, with no end in sight.

Online Reporter - Brady Smith

Powered by Frankly