Gas Prices Drop Below $3 in Some States

Gas Prices Drop Below $3 in Some States

Drivers in South Carolina are being treated to gas prices below $3 a gallon, something that might even creep into other parts of the country.

Across the country this week, gas prices will start at 49 cents below the peak we saw in early April, something that is already affecting change in new car purchases. When hope for sub $4 or even $5 prices seemed all but lost, hybrid, plug-in and EV sales peaked at 4.6 percent, but are expected this month to sink  back to 3.4 percent according to LMC Forecasting.

Even in California prices are falling below the $4 gallon mark, though the lowest price is in Greenville, S.C. at $2.904. Overall, the dip can be attributed to a softening Chinese economy and tumultuous Euro, both of which are expected to pin prices down.

“Until a permanent solution is found to the eurozone’s problems, the global economy is likely to muddle through this crisis for a considerable while, and persistent bouts of risk aversion are likely to haunt the oil markets, making any sustained upside difficult,” said a report from London’s Barclays Bank.

That doesn’t mean you can rely on prices to stay low, and it’s still no justification for buying something you can’t afford to fuel at the higher prices we saw this year. Prices will inevitably rise again, so now might actually be a better time to look at getting that fuel-sipper you were green eyeing two months ago.

[Source: Detroit Bureau]