How About Those Gasoline Prices? - Will The Dream Come True?

Back on August 17, 2008, when the price of gasoline was starting to inch down a bit, I wrote this post, in which I described a dream that I had.

"In that dream, I went out of my house one day and noticed something that completely astounded me. If I recall correctly, in the dream I was walking with my wife up the road to nearby Woodbury Plaza, and in the distance I saw the price sign on display at the BP gasoline station. What caught my attention was the price that was advertised for a gallon of regular unleaded gasoline. It read $1.75 per gallon."

As I wrote at the time, the chances of that happening were extremely far-fetched. A little over a month later, on September 28, 2008, I commented again on the decline in gasoline prices. I ventured the following:

"I am going to go out on a limb a bit and predict that we will continue to see a decline in the price of gasoline, absent some catastrophic event, in the next 3 or 4 weeks. American motorists are driving less, and the prospect of a prolonged downturn in the economy will also serve to depress demand. I believe it is possible that the price per gallon here in my part of Nassau County might even dip below $3.50 per gallon for a brief period."

Well, in the month that followed, prices have fallen even further than I would have dared to hope for. There are gas stations in my neighborhood that are now selling regular unleaded at 2.69 a gallon. The price for a gallon of regular unleaded need only drop another 94 cents in order for my aforementioned dream to come true. Still, I am doubtful the price will fall that far, though it would really blow my mind if it did.

One of the concerns I have, as I wrote before on this topic, is that as welcome as the drop in price is, it could also result in the public going back to its old carefree driving habits. People might even start buying Hummers again in the mistaken belief that things are "normal" again. That would be a big mistake, as a rise in fuel consumption will cause gasoline prices to rise above $4.00 per gallon once more. As I also wrote before, conservation efforts will slacken as colder temperatures descend on us. How many people want to ride their bicycles on a cold, windy day, or even worse, during a freezing rain?

I don't know how long gasoline will continue to fall or stay where it is, though I would venture a guess that by winter, regular unleaded will be back over $3.00 a gallon again. Enjoy the ride while it lasts, but not by going on joyrides!