GAS DIPS BELOW $2 A GALLON, EXPERTS WARN NOT TO GET COMFORTABLE

By Ezra Mann/OF THE COMMERCIAL STAFF

Gas prices across Pine Bluff dipped below $2 a gallon Wednesday with some stations reporting costs as low as $1.96 a gallon for unleaded fuel Wednesday.

Although demand is lower in the U.S., an increase in demand elsewhere, such as China, could send prices skyrocketing as they were in the summer, said Dr. Hank Campbell, dean of the School of Business and Management at the University of Arkansas at Pine Bluff.

Campbell said the current price decline and other economic factors signal a recession and that the price of fuel will only remain lower temporarily.

“There are going to be 319 million people joining the middle class in China, and they are going to want fuel for their vehicles,” Campbell said. “It will put a little bit of relief on the consumers, especially for those who are depending on heating oil this winter, but maybe the American people should take this time to save.”

Michael Right, vice president of public affairs at AAA, said consumers should enjoy the lower prices while they last.

The main reason oil prices are lower than a year ago is because crude has fallen sharply, Right said.

“It hurts the family budget, so many people still aren’t going out on any joy rides,” he said.

The lower prices were welcomed by area residents surveyed Wednesday. Customers at the Shell station at 2801 S. Hazel St. said they were thrilled to see prices drop.

Kalvin Fletcher, who is disabled, said he thought gas would still be much worse following hurricanes. He does not drive much on average, but appreciates the help lower prices will bring.

“I’m pretty excited and hoping that it doesn’t shoot back up,” said Latoya Peterson, who works at Lennox in Stuttgart. “I just found out I’m pregnant, so it will certainly help with some of those expenses when I drive 30 miles to work.”

Steve Andrews, a certified public accountant with James Hanson, CPA, said it is about time for prices to drop. He said lower gas prices will make it easier on his children who are driving from Michigan for the Christmas holidays.

“It’s superb because it will help me and my wife make trips to Hot Springs and Little Rock,” said Alvin Armour Jr., who works in the wood yard at Evergreen Packaging. “It never hurts to have a little more money in my pocket.”