Gas Prices Down But So Is Economy
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DENVER (CBS4)- Gas prices are down in the Denver metro area between three and four cents from a week ago. That’s the good news. The bad news is it’s a double-edged sword. Gas prices are down, but so is the economy.
The average price of regular unleaded in Denver is $3.43 a gallon. That’s 78 cents higher than a year ago.
The current price trend is headed down.
Triple A spokesman Wave Dreher said gas prices in the Denver metro area are falling with the rest of the country because the price of a barrel of oil is down more than $25 from April.
“It’s actually healthy for the economy but maybe for the wrong reasons,” said Dreher.
It’s healthy because lower fuel prices mean the cost of transportation is cheaper and that puts more money in people’s pockets. But the reason oil prices are falling is because, as the stock market indicates, there’s growing concern over an economic slowdown.
“When you look at oil prices going down, it’s an indicator that says the economy is just not booming anymore,” said University of Denver Daniels College of Business Professor Mac Clouse.
Fuel prices have fallen about one percent from a week ago. If oil prices continue to drop, gas prices should follow.
“I do believe there is some opportunity to make a profit, where so many places were not making a profit this summer. Now they’re taking that opportunity and it happens everytime gas prices go down,” said Dreher.