Gasoline prices in the United States reached an all-time inflation-adjusted
low in February, dropping to less than $1 per gallon nationwide. The average
cost of gasoline for all grades and including taxes reached 99.8 cents per gallon
on February 18 according to the Lundberg Survey of 10,000 gas stations nationwide.
After 18 months of perpetually declining prices, however, gas prices might
soon begin to inch upwards. “The price cutting is faster and deeper than it’s
been so far this year, but it is probably fizzing out,” Trilby Lundberg
told the Associated Press. “Behind the average price fall are a few lonely
no-change (prices) or price hikes here and there, from which I infer that retailers
and their suppliers can’t take it anymore.”
Add increased demand in the spring along with pollution control measures that
will likely add to the cost of gas, and American consumers will likely see an
upward correction over the next few months.
So much for those who 3 years ago were predicting an imminent oil shortage
and massive price hikes.
Gas prices dip to less than $1. Associated Press, February 21, 1999.
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