Why Are Gas Prices Dropping?

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The economy is in a state of hurt right now and the only thing making consumers feel better, believe it or not, are gas prices.

The last time Southern Colorado saw gas prices in the $2 range was 8-months ago.

A trip to the gas station is less of a pain in the pocket these days. The Shell Gas Station on North Academy Blvd. in Colorado Springs had their regular unleaded gas listed for $2.74. "This is the cheapest gas we found," said Charmaine Page who lives in Aurora, CO.

"I knew it would come down sooner or later," said Larry Espinoza, a Colorado Springs resident.

The reason for the lower gas prices? Refineries along the Gulf Coast that lost production because of Hurricanes Ike and Gustav are picking up steam again.

Another reason for the dip in gas prices is because of a weaker economy. Experts say, the demand goes down and production goes up.

"It's more dollars in your pocket," said Frank O'Donnell, a Colorado Springs resident.

Prices seem to have dropped relatively fast. "That's a drop of what, almost 45 or 50-cents in 9-days," said O'Donnell.

The last time the U.S. saw such a sharp drop in gas prices was in the early 80's.

Espinoza has a 38-gallon truck. Usually it costs him $100 to fill up. "Saturday I filled it up for $42," said Espinoza.

"Actually, we can afford to go get a car wash now," said Joe Perry, a Colorado Springs resident.

Economists say consumers save one-billion-dollars when oil is just one-dollar cheaper.

"It's a big difference between $60 and $80," said Perry.

Experts expect gas prices to continue to drop over the next few weeks. "I hope so," said Page.