$1 a Gallon for Gas?


Thursday, December 11th 2008, 12:34 am
By: News 9


By Dave Jordan, NEWS 9

OKLAHOMA CITY -- It was only seven months ago when gas prices were at records highs of $4 per gallon. Now, gas prices are inching closer to $1 and some analysts are predicting that price will come true by January.

With high gas prices over the summer, many drivers altered their commutes and vacations, but gas prices are finally coming down, and just in time for holiday savings.

"Twenty-two dollars to fill up, and normally it would take probably $45, and this is premium, too, premium unleaded," driver Torey Fielder said.

"You had to go to the bank to get a loan," driver Bob Steidel said of paying for gas when it was $4 per gallon.

Currently, the average price for gas in the metro is about $1.48. It's likely that drop could continue into the New Year.

"There's serious talks that gas could get down to about $1 per gallon over the next couple of weeks. I mean, there's just that much supply, and demand is down," the Dean of OCU Meinders School of Business Vince Orza said.

That's good news for consumers, but potentially bad news for the state. State revenues tied to oil, and gas taxes go down when the prices fall at the pump. The low gas prices are expected to impact the budget next year.

AAA disputes reports forecasting gas for $1.

"I think that is too far below the base, but as crude continues to fall, we may see prices drop $1, $1.25," Chuck Mai with AAA said.

Part of the reason there's so little demand for gas is because drivers didn't go back to their old driving habits after prices fell. Experts said even though oil prices will eventually go back up, they don't expect to see highs like $147 per barrel.