Listen Live
Delays and Cancellations

High Gas Prices Cause Drop in Demand, Which Causes Prices to Drop

Higher gas prices have led to a drop in demand for fuel, which, in turn, has brought the price back down slightly. According to the national auto club AAA, gas prices across the country are down a few cents this week. Analysts say that’s largely due to a dip in the demand for gasoline. According to Triple-A spokesman Nick Jarmusz, demand is down because prices have been up. He says this is the first time that demand for gas has fallen in a while. AAA still doesn’t expect the high gas prices to prevent people from taking summer vacations. But the dip in demand shows that drivers are trying to find smaller ways to use less fuel. $3 per gallon seems to be the price point where people adjust their driving habits. The current average price for a gallon of gas here in the Tri-States is $2.89. That’s about a dime higher than the statewide average for Iowa.

Print Friendly, PDF & Email