"Cheap" gas found

October 7, 2008 3:57:25 PM PDT
One positive trend for consumers is the recent decline in oil prices.It bounced back a bit Tuesday from Monday's eight month low, settling at just above $90 per barrel.

But that's well off its record high of $147.27 set four months ago, and that's having an impact on gas prices.

In Pennsville, New Jersey, a gallon of regular is going for $2.95.

"I came out this morning and went down the street and saw them changing the sign. It went from $2.99 to $2.95. It can't get any better!" said Beth Jacobs of Pennsville.

"It's great. Yesterday I was here and it was $3.05. I put most of a full tank in here and then drove by today and it was $2.95, so I stopped in here to fill it back up," said Andrea Thompson of Pennsville.

AAA expects $3.00 per gallon to be the new national average soon, so prices at a New Castle, Delaware gas station will likely drop, too.

The reason? The dollar is gaining strength and crude is traded in dollars. Furthermore, AAA says demand for gas is low because fewer drivers are hitting the road.

But, AAA says there could be a downside to the recent trends.

"If the economic picture brightens, and gas prices drop, will people go back to their old driving habits and again put pressure on prices? That question remains to be answered," said Cathy Rossi with AAA.

Even so, Ray Smallwood couldn't wait to fill up his gas-guzzler today.

"Big Red's been in the driveway quite a bit because of the gas prices," Smallwood said, referring to his Chevy Silverado. "It's a one year old truck, only got about 8,000 miles on it. But now the prices are coming down so I can drive it again!"

Even if that means driving across the Delaware Memorial Bridge into New Jersey where prices are cheaper.

"We fuel up every time we come over here. It's worth it," said Jim Currington of Wilmington.

As gas prices drop, you might want to pocket some of those savings. That's because home heating oil prices are expected to go up by 15%.

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