Why expert says low gas prices could be sign of economy in trouble
Gas prices are down again this week in Massachusetts, and they've been steadily declining since late January. One expert said that while the lower prices are a good thing for drivers, it could be a bad sign for the economy in the bigger picture.
Historically, gas prices begin to creep higher as warmer weather and busier driving season begins.
Massachusetts gas prices
According to AAA Northeast, the average price in Massachusetts this week is $2.99 per gallon, down two cents since last week.
Nationally, gas currently averages $3.08 per gallon. That is five cents lower than a month ago, and 31 cents lower than the same day one year ago when gas was averaging $3.39 per gallon.
Why are gas prices falling?
AAA said the current declining prices are due largely to the falling crude oil prices and uncertainty about the economy in the months to come.
"With the switchover to pricier summer blended gasoline mere weeks away, prices are likely to increase down the road on that fact alone, but market uncertainty is muddying the waters for the time being," said Mark Schieldrop, senior spokesperson for AAA Northeast. "Ultimately, the lower cost of crude oil is weighing heavily on gas prices."
Patrick De Haan of GasBuddy also said the declining prices could be a sign of economic troubles.
"Uncertainty over the economy, paused tariffs, the stock market has plunged, OPEC is raising production in April," De Haan said. "And overall, the volatility in the government is certainly driving stock prices lower. That's also pulling oil down on a fear that an economic slowdown will likely undermine global oil demand."
