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Why the Recession and Unemployment Mean Lower Gas Prices - Yeah, It’s Supply and Demand


                               
AAA reports gas prices continue to recede amid the country’s troubled recessionary times and high unemployment… why?  Chalk it up to the fundamentals of supply and demand.  With demand way down as fewer people work and travel during these tough times, higher supply levels equate to lower prices at the pump.  And every penny saved can help.

Gas prices have dropped seven cents over the past two weeks, according to The Lundberg Survey published Sunday.  The Survey reports the average price of a gallon of self-serve regular is $2.52, down just over 12 cents since August 7, and indicates these prices mirror a fall in the price of crude oil, which has dropped nearly 12 cents a gallon in that same time.

Furthermore, industry analysts agree the trend for gas prices will only continue to descend.  Currently, gas prices in the Tampa Bay region range from $2.32- $2.48 a gallon for self-serve regular.

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Alicia Roberts:

Alicia Roberts, News Channel 8 Traffic Reporter, helps get your morning off to a smooth start with TBO Traffic. Wake-up with Alicia each weekday beginning at 5 a.m. for up-to-the-minute roadway conditions. Email
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