Oct 13, 2008 10:44 pm US/Central
Lower Gas Prices Doesn't Equal People Driving More
(WCCO)
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Even though prices are falling AAA spokesperson Dawn Duffy said people aren't driving more. (File)
CBS
Minnesotans worried about the economy have some good news. Gasoline around the state is well below three bucks and falling. In June, it was selling for just about $4.00 a gallon. Now, it's down a dollar.
Even though prices are falling AAA spokesperson Dawn Duffy said people aren't driving more.
"Usually when gas prices go down we forget our old conservation habits and we start driving again but this is not happening right now," Duffy said.
Elisa Carlson's situation may be just one example of why. She's watched the numbers fall at gas stations and watched the numbers fall on her future.
"With the way the stock market is, just because the prices are falling a little bit I'm just as scared about other things," Carlson said.
In July, crude oil hit an all time high $147 a barrel. Now, it's $82, which is more than a 40 percent fall. Analysts say energy traders are feeling the same fears as Wall Street: uncertainty about the future and the possibility of a global recession and less oil use because of it.
It was a year ago when gas was selling for the price it is now, but on a 20 gallon tank we're saving $20 over what you paid this summer.
AAA won't release a survey for about a month as far as holiday travel is concerned but we're already hearing that travel could be down about one or two percent from a year ago. Again, analysts credit the same reasons: money going to pay mortgages and bills over paying for road trips, no matter how low the prices go.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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