January 17th, 2015 I saw some gas prices in North Carolina sink to $2.09. If you take into account that roughly 18 cents of that price is taxes, the real price would be $1.91. That's scary low to me. Even more scarier to most people is they know at some point these sinking gas prices are going to hit a bottom and begin a boil back to who knows what heights.
The frugal among us will tell drivers to set aside some of the savings the rock bottom fuel prices are affording them because the oil barons will be back to claim them. And most likely they will.
President Obama knows this and has gone to record telling Americans to enjoy the discounted fuel, because it won't last.
In an interview with The Detroit News' David Shepardson, Obama said:
"I would strongly advise American consumers to continue to think about how you save money at the pump because it is good for the environment, it's good for family pocketbooks and if you go back to old habits and suddenly gas is back at $3.50, you are going to not be real happy."The President suggested what the aforementioned "frugal among us" suggests - Save the savings. The President also suggests buying an appliance that will maximize those savings even after the low gas prices have evaporated.
Oil prices have fallen 40 percent since June 2014 and continued into the second half the year, as US shale production surged and the 12-member oil cartel OPEC maintained its output.
While the decline in fuel prices will stabilize and remain level at some point in the future, they ultimately will climb back up. You may want to rethink that purchasing that big SUV if low gas prices is the sole reason your interest is peaked. You may find yourself trying to off load it next year this time for a Telsa, Prius, or public transportation.