Home  News Local News An economic silver lining
|
An economic silver lining |
|
|
|
|
Written by Dr. Garth A. Rose
|
|
Sunday, 19 October 2008 |
Proving every cloud does have a silver lining, among the economic woes facing the country, oil prices which rose on the world market to as high as $143 dollars a barrel some six weeks ago have now fallen to below $80 a barrel. This sharp decline, resulting from nervousness among investors as the world’s financial market falters, has created a related downward spiral in gasoline prices, falling from a national average of $4.12 per gallon for regular in early September to a current average of $3.16.
South Floridian motorists are surprised at the rapid decline in gas prices, but very grateful for the relief at the gas pump especially with the current economic crunch. One of the busiest gas stations has been a Mobile station on West Oakland Park Drive in Lauderhill, where on Sunday the price for regular was $3.15 a gallon, well below the national average of $3.30 on that day.
Surprise registered on the faces of motorists as they pulled up to the pumps. The driver of a large dodge pick-up was heard saying, “This is a blessing. This will save me about $20 each time I fill the tank of this gas guzzler.”
On Tuesday there was even greater elation when motorists pulled up at a Shell station, on Miami Gardens Drive in the City of Miami Gardens, where unleaded gas was being sold for $2.95 a gallon. “I never believed that I would ever see gas being sold for less than $3.00 a gallon,” said Tanika Redwood, as she pumped gas into to her 1998 Buick. “This is such a relief. I do hope that the prices will continue to fall, and stay down this time. They have fooled us in the past, falling just to rise sharply again.”
Gregg Loskoski, a spokesperson for AAA South Florida said that the downward trend in gas prices is expected to continue particularly as long as oil prices continue to fall, and there is no resurgence in the near future. Loskoski said he could not predict how far prices would fall, or if they could fall below $2 within the next few weeks, but said they could rest at around $2.50. On Wednesday AAA South Florida placed the average price for a gallon of unleaded gas in South Florida as $3.18, which although well below the average of $4.16 reached in early September is still above the average price of $2.80 in October of last year.
Despite the rapidly falling price for gasoline, the National Weekly’s investigation revealed that some gas stations, mostly in South Miami were selling gas well below the national average. In Doral, Miami Dade, however, most of the gas stations on NW 87th Street were selling regular gas at $3.45, which is significantly higher than the regional low of $3.17. Asked why his station was selling gas at such high differential over the national and regional average the operator of a Mobile station explained that he sets his price based on gas ordered, and bought, when prices were much higher, plus he takes into consideration the cost to operate a fairly large food-mart.
It was noted that there is a correlation in petrol stations selling gas at higher prices and operating food marts, compared with those not operating food marts, most of which were selling regular gasoline either a little less than $3 per gallon or just above.
The rapid rise in gasoline prices over the past year had placed severe strain on the pocket books of South Floridians, many of whom were forced to make drastic changes in their driving habits, either driving only when it was absolutely necessary, or taking public transportation, like metro-buses and Tri-Rail to commute to and from work. With prices falling significantly, motorists will get relief in their budgets, and, as some motorists told the National Weekly, will now be able to spend the savings on gasoline on essentials like food and utilities.
|
|
|
|
