Gas in Louisiana is down nearly seven cents over last month as the typical fall season gas price reduction appears to be arriving a month early.
AAA fuel analyst Don Redman says it’s not just the usual seasonal market forces at work. Prices are notably lower than they were this time last year.
“We are about 30 cents a gallon cheaper than we were at this time last year, I think all of the worry is about the future of the economy, in particular, the global economy.”
The average for a gallon in Louisiana is 2.31 a gallon, down from 2.38 last month, and 2.64 this time last year.
The global economy appears to be slowing down, and there are growing fears the US could be looking at a similar fate in the near future. Redman says those concerns are translating into lower prices at the pump.
“Whenever an economy starts slowing down so does the demand. When there is less of a demand you see those prices start falling until the market can catch up with it.”
Redman says he expects prices to fall under two dollars a gallon in some parts of the state by September if demand continues to crater.
“That’s going to be the current trend at least in the short term barring, of course, any significant disruption in the supply, or if any more missiles are lobbed in the Middle East.”