Gas prices have been on a steady drop for months leaving prices at their lowest rate since 2010, leading to an increase in consumer spending during the holiday season.
Sixty percent of gas stations in the U.S. are selling gasoline at lower than $3 per gallon.
The cheapest place that sells gasoline is in South Carolina or Tennessee, where the state average is $2.75 per gallon, according to The Washington Post.
Food, shelter and medical care have all been increasing while gas prices are rapidly decreasing.
Reports show that low-income Americans spend about 13 percent of their income on gasoline.
Some contributors to the sudden decrease are oil production and the demand for gasoline, according to the Los Angeles Times.
Other sources claim that America’s shale oil revolution is the cause of the sudden drop.
As a consequence, Saudi Arabia has to settle for lower crude oil prices, reports The Washington Post.
According to the Los Angeles Times, prices may continue to decrease but it may be seasonal due to the recent switch to a less expensive winter gas blend.
The Washington Post reports that consumers are celebrating the sudden drop but know better than to get used to.
If there is something Americans have learned throughout the years it is that gas prices constantly fluctuate, rising and falling at the drop of a hat.
According to The Washington Post, Oregon has had the largest decrease of 47 cents, followed by Washington with 44 cents and then California with 40 cents.
The lower expenditures on gasoline allow working and middle class Americans to purchase necessities and luxuries they would not be able to afford otherwise, reports The Washington Post.
For example, the prices will increase the amount of road trips people take during the holiday season, as well as the amount of money people spend shopping for gifts and eating at restaurants.
Major companies, like Walmart, admit to having major economic boosts since the decrease in gas prices.
Not only are more consumers showing up to the stores, but they are also spending more, reports The Washington Post.
While some people are taking advantage of the extra money, others remain skeptical and do not want to change their spending habits.
“I’m satisfied with gas prices but it will definitely not have an impact on my spending because I will not be spending more money just because I’ve saved on gas,” said student Damarea Parker.
Parker believes the decreasing gas prices are part of a bigger plan and that it was done with the purpose of increasing the amount of money people spend during the holidays.
“I’m not going to spend more money because I feel like it is a scam. The only benefit is economic travel and more gas in my car,” added Parker.
However, lower gas prices seem to be a motivator for higher spending rates of spending as the holidays roll in.
Originally published on coyotechronicle.net (November 29, 2014)