Gasoline prices in the US are heading under $2.00 per gallon.
It looks like several things are at play with the lower gasoline prices we are experiencing in the US in 2017. One is increased oil production and the other is weak consumer demand.
US consumers are tapped out and waiting for a lift in the US main-street economy. Internet on-line retail is growing and brick and mortar retail is imploding and retail employees are nervous.
Both OPEC and the US are pumping more oil. OPEC reported an increase in member oil production by 106 million barrels in 2017.
A good measure of consumer driving is federal gasoline tax receipts. The federal tax has been 18.5 cents per gallon for many years.
Gasoline tax revenue peaked at just over $40 billion in 1999. It then declined to $33 billion in 2004 and popped back to $40 billion in 2006 and declined back to $35 billion in 2016.
Consumers continue to drive less and tourism is down. In the US, we are in the 9th year of the “great recession” and are awaiting corporate tax cuts to bring manufacturing jobs back to the US. This hasn’t happened yet.
Norb Leahy, Dunwoody GA Tea Party Leader