Do you think gas prices will go up again after the election?

@jonesy123 (3950)
United States
November 1, 2008 8:37am CST
Since August where gas was over $4 here in the US, gas prices have essentially halved. In some places you can now get gas for under $2. This is an amazing and very drastic drop. While I understand that with the bad economy and all there is less demand for gasoline, and, yes, I appreciate the low prices (who doesn't? lol), I have begun to wonder whether this drastic drop is artificial and we will quickly see an increase again after the election. What do you think?
2 people like this
6 responses
@Pigglies (9340)
• United States
3 Nov 08
Gas was over $4 here and now is just under $3. I am amazed. But then, when you think about it... there is a possible explanation. Well, two that I can think of. The first one comes from my economics professor. He was telling us that when gas prices were high, people started coming up with ways to drive less. So if people weren't buying all those SUVs and they were driving smaller cars, driving less, etc. the price had to go down to increase demand again. But if the price stays down long enough, people will once again buy those inefficient vehicles, drive more, etc. and then the prices will go back up. The second explanation is a mix of a debate we had about this where I work. The value of the dollar has been dropping and there was little demand for the dollar. You needed more money to buy anything. Gold, silver, gas, etc. But then the stock market dropped drastically. When people started selling their stocks, an artificial demand for the dollar was then in place. The value of the dollar went up, and therefore gas temporarily cost less. When the dollar value goes back down again as things settle, gas prices will once again shoot up.
1 person likes this
@jonesy123 (3950)
• United States
3 Nov 08
Mmmh, interesting argument, especially the second one. I'll have to ponder that one for a while. Thanks for your input!
@EAStanley (2689)
• United States
3 Nov 08
Wow, this is an interesting post with an interesting explanation. This makes sense to me. But, I am not an Economics Professor, so I would never be able to explain it well like that. *smiles* I like it when people are able to make complex things easier for somebody like me to understand. *smiles* I also believe that gas prices will go up after the Election.
@Pigglies (9340)
• United States
7 Nov 08
Thanks for the best response!
• United States
1 Nov 08
Yes they will go up, hopefully not as quickly as they went down. This is an indication that we need to drill here and drill now. If B.O. has control over the casa blanca then they will go up because he hates American businesses making any profits and he'll take what he wants. If McCain wins he'll be gently nudged into drilling so that we can break our ties with foreign oil and become independent for our own resources.
1 person likes this
@jonesy123 (3950)
• United States
1 Nov 08
So who do you think is exactly behind this sudden steep decrease in prices? Personally I think that the prices were artificially driven up to facilitate and deepen our economic crisis. It accelerated so suddenly. Now somehow they are being artificially driven down, no rhyme or reason to it. There are obviously manipulating forces at work to some extend and I find myself questioning who would stand to benefit from it.
1 person likes this
@rocketj1 (6957)
• United States
1 Nov 08
Demand is down so prices are down. Supply and demand.
@jonesy123 (3950)
• United States
1 Nov 08
Normally, yes, but not this drastic. There is more at work than simple supply and demand. Demand didn't half, and demand didn't drastically go up either. Oil prices are subject to manipulation.
@gwoman2 (712)
• United States
7 Nov 08
Hi Jonesy123, yep they dropped considerably...Gas here in South Jersey is at $1.93...my goodness I almost filled up my tank with $10.00...and boy did that feel good!! Hope they don't go up...on oil for heating I paid $260.00 for 100 gals. So I guess they get you one way or another, UGH! ~G~
@ersmommy1 (12605)
• United States
6 Nov 08
Time will tell. They may go up a little. But I bet they don't go up as drastically as they did. Many people have changed the way they drive. For some it has become a habit. So has saving money here and there.
@bobmnu (8160)
• United States
4 Nov 08
It will depend part on who gets elected. IF Senator Obama wins then people who need gas will buy on the futures market to lock in a cheaper price and this will drive up demand. If Senator McCain get in the price will follow the normal market ups and downs to see if he will be drilling for more domestic oil. The rapid down turn in the price is due to two factors. We are using less gas and the fall and winter tend to be a time when we use more heating oil and less gas.