Lower gas prices to the rescue amid recession fears?
Will lower gas prices save the economic day?
The average price for a gallon of gas nationwide has dropped 15 cents in the last five weeks and AAA expects it to become even cheaper this fall, due to lower crude oil costs. According to one oil analyst, lower prices at the pump may be the fuel the economy needs to stay afloat because it puts more money in consumers’ pockets.
“I think it would mitigate any impact of a recession,” Lipow Oil Associates President Andy Lipow told FOX Business’ Dagen McDowell on Monday.
According to AAA, the current national average price at the pump for regular gas is $2.59 -- and the cheapest state for gas is Mississippi (at $2.20 per gallon).
Lipow said he expects gas prices to decline an additional 10 to 15 cents per gallon over the next two months “barring any hurricane impacts.”
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He also noted that lower natural gas prices, which are off about 27 percent since last year, are also helping the consumer.
“Natural gas prices, you know, go into the electricity prices. It also affects manufacturing here in the U.S. because it's lower energy costs,” he said.