Gas still falling

As President Bush gets ready to leave, it looks like gas prices are falling back to prices when he first took office. It is hard to believe that it is back below $2 a gallon when just a year ago we were paying close to $5 a gallon in California.

New York (CNNMoney.com) –

Gas prices fell for the ninth consecutive day, according to a survey of credit card swipes at service stations across the nation released on Sunday.

The national average price dropped for its ninth consecutive day to $1.627 a gallon, down 0.3 cents from the previous day, according to the motorist group AAA.

The national average last hit close to the current price on February 5, 2004, when it averaged at $1.627.

This is probably more a result from the bad economy than Bush’s leaving the office. The latter is just a coincidence. Will gas go back up in the near future or will it continue to collapse? If we explore basic supply and demand economics, the answer would indicate we will be enjoying these prices for a year or two. Sweet!