Gas prices continue to stay low across the state

There has been a big collapse in the price of oil, from more than $100 a barrel in 2014 to just under $30 a barrel this week. According to industry analyst Trilby Lundberg, it’s the lowest it’s been in seven years.

Consumers are seeing it at the gas pumps, as the average price of gasoline has dropped 14 cents, with prices in Mineral County as low as $1.79. At Costco in Missoula it’s currently $1.75, and in Polson it’s reportedly as low as $1.68.

“The bottom line is that lower prices boost the Gross Domestic Product and consumer spending lowers overall inflation pretty dramatically,” said Josh Zumbrun, Wall Street Journal’s national economics correspondent.

Everything will become cheaper because changes of just a few cents per gallon have a huge impact on the economy. The cost of producing goods and services that use gasoline as a component decreases. Any good which is transported to market via truck or car also decreases in price.

According to recent studies, Americans saved 5.5 percent of their income in November because they spent less money on utility bills and gas. American households are expected to save $700 to $750 at the pump this year, according to analysis by the Energy Information Administration.

It’s also a good time to plan a trip.

“Consumers are going to witness a drop in the costs of airline flights, as well,” said Alexander Goldstein, founder and CEO of Eligo Energy in an interview with The Daily Caller News Foundation, “travel experts say that this month they are seeing some of the lowest fares they have seen in years.”

We are also seeing some of the saving right here in our own communities. At this month’s Alberton School Board meeting, school superintendent, Clay Acker said that he compared the schools heating expenses over the years and is starting to see a decrease in the schools heating costs.

What are consumers spending the money on that they are saving at the pump? According to a study by JPMorgan Chase and Co., people are spending roughly 80 percent of the money they save at the pump. With about 20 percent going to restaurants, department stores, entertainment, electronics and appliances.