But experts aren't sure if it will last
In case you haven’t noticed lately, you aren’t having as much pain at the pump as you did a month ago. And it’s definitely less painful than it was a year ago. The lower gas prices are having a positive effect on the economy. For now, at least.
The average price for a gallon this morning in Houston is $3.37. That is down from $3.53 a month ago and $3.80 a year ago. Gregg Laskoski of Gas Buddy explains why they're falling.
“We have an energy boom in the United States. We’re getting more fuel, oil and gasoline from more places. We’re seeing new oil come from West Texas, for instance,” Laskoski told KTRH.
Economists like Ray Perryman tell KTRH the lower gas prices are helping the economy.
“It creates more spending power and generates more economic activity. There has been a correlation between consumer spending and gas prices historically,” Perryman said.
Whether or not this trend continues is a different question. Laskoski says prices will go up in time for the summer season, but will they rise as much as they did a year ago?
“I don’t think they will. But, we can’t ignore the fact that certain events, like weather, can push crude oil prices up,” Laskoski explained.
Perryman says higher prices could slow consumer spending.
“The sequester cuts are coming into play now. People know it’s going to happen. They are going to react to it,” Perryman said.