The price of a gallon of unleaded gasoline has been dropping.
Don Good from the Good Oil Company in Winamac says the prices will continue to drop.
“For the foreseeable near future, the trend is to continue down,” said Good. “We’re probably going to bottom out not too far from here. There are a lot of places that are starting to get under three dollars. That’s kind of under cost for some of them, but they’re trying to beat that three dollar mark. For the long term, we should be under three dollars and unless there’s a world event that changes that we’ll probably stay in that range for a while.”
He explained that the reason for the falling gas prices is the domestic production of fuel.
“Mainly what we’re seeing here is the result of the fracking. It’s really changed the world dynamics of supply on a world stage. OPEC is really kind of in a disarray right now because the United States is putting so much product out that they kind of lost some of their market share so they’re fighting amongst themselves. Recently, Saudi Arabia came out and said that they are not going to cut production. They would just let the level fall until it hit what was supported by the fracking in the United States. For them to hand that off (so to speak) to the United States was just a huge development of work economics of fuel.”
He added that there should be more stabilization in fuel with domestic production where it is.