They'll drop when prices drop below three dollars a gallon and I really don't see that happening anytime soon. Here in the "burg" even with the slight drop I saw on the gasoline futures it still works out to $3.58 a gallon. Of course that is with today's five cent drop and no one want's to talk about the last five or six trading days where the price went up.
If the author thinks that when gas drops below three fifty a gallon people are going to be rushing back the FSP SUV he is very mistaken.
If the average driver is filling up once a week with 16 gallons of gas what real savings are they going to see with a quarter drop in prices. Saving four dollars a week on gas isn't going to get me all warm and fuzzy so that I'm running out and buying a normal car when my energy cost for my utilities and grocery bills are sky rocketing up.
Just for an example: Seventeen months ago I replace an old top load washer at work with an energy efficient front loader. Dropped my water usage by 3,500 - 4,000 gallons a month. This year on average I'm running anywhere between 300 and 400 gallons below that initial 3.500 - 4,000 gallon savings. My water bill is going up again because of the new rate increases. I've been staring at the bill wondering what the hell did I do, to see my bill jump another $20 - $30 a month after the $75 - $80 drop last year.
This same thing is happening all over the country gasoline may be dropping but food utilities and taxes are going up for everyone. People are looking everywhere for ways to save money and because of that I just don't see fuel efficient cars dropping in price in the near future.
Even with the cheap fuel prices right after I bought my Prius I still yearn for the days when I could fill her up for less than $25. Today it's costing me close to forty dollars to fill her up every three weeks.
oil at $88 a barrel today.
Two reasons, one there is an over supply of oil on the market due to the worldwide economic down turn.
Then add in Greece that is toast and Spain is close to collapse. Look at the Euro, it is trading below 1.25 and dropping fast and talk is that we could see parity with the dollar by labor day. China is also in huge economy trouble, they are a net exporter and their economy is export based and with the west's economy in a major down turn and the Euro Zone in crises mode it isn't helping.