While the stock market plummets and job losses are at record highs, a lot of people may have missed the drastic drop in gas prices. The national average price of gas today is $3.50, according to AAA. That’s down from a record high of $4.11 this past July.
Experts say the price of gas would be even lower if not for the gas shortages in the South due to Hurricane Ike. $3 gas could be the norm once again, and that leaves us wondering if the drastic swing in purchases from large SUVs to smaller cars will reverse course.
Nearly every automaker has already shifted its production plans toward more fuel-efficient vehicles, and we doubt $3 gas will change those plans. Even if low gas prices are here to stay — for a while — the dismal economy may still prevent buyers from scooping up used and new SUVs despite significant discounts.
Gas prices in retreat (BizJournals)