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Dec 06, 2004 -- Price relief at the pumps

Price relief is coming to a gas station near you. Gas prices have been zigzagging all over the place, which is not normal. So, there has been lots of uncertainty involving fuel. Recently, fuel prices have been dropping, and right now the cost of a barrel of oil is down about 25 percent. That’s way down compared to six weeks ago, and signs indicate that it could go down even more. Also, OPEC – one of the last oil cartels in the world - is trying to come up with a system that will “floor out” the wholesale price of gas. For a while, the wholesale cost of gas was about $55, but now it’s back into the low $40s. OPEC is scared the price is going to drop into the 30s, so the decision makers want to set a floor price for how low the price can go. The good news is that when wholesale prices go down, over time the price for consumers drops at the gas station. It’s an early Christmas present for consumers!

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