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Economists believe if gas prices continue to decline other products like groceries will decrease in price

Customers fume during gas station's 99-cent deal
Posted at 9:18 PM, Jul 26, 2022
and last updated 2022-07-26 23:19:41-04

BALTIMORE  — The price of gas is a big factor that drives our economy, but gas prices are starting to decline, which can lead to a price decline in other areas, such as grocery stores.

Economists say it's a ripple effect.

If companies pay less for gas, this leads to stores paying less for deliveries, which results in shoppers paying less for their products.

"Energy prices and gas prices, like trucking and distribution, serve as a core costs of running the system. It will have an effect. So, falling gas prices are definitely good for consumers," said Timothy Sullivan, Expertise in Regional Economics.

In June, trucking companies paid an average of $5.83 a gallon. Now, they’re paying about 54 cents less per gallon.

If the trend continues, economists say consumers may start to feel less financial burden.

"It may take a while, well months, in some ways, for inflation to eventually get back to being more manageable, but gas prices moving down is always a good sign for consumers," said Sullivan.

"Everybody can benefit from it, but as parents, definitely your mind goes to, 'What can I do with that little bit extra?' So, I think one of the big things we like to do is go explore different state parks in Maryland, so this really gives us more options to drive farther, and go explore more with our little girl," said Can Zhang, a Baltimore City Resident.

Although some families look forward to the decrease in gas cost, some people think prices need to go higher.

"If we’re ever gonna solve the fossil fuel problem, we need gas prices to go way higher, like in Europe, so that we can actually push people towards more electric cars and hybrids, when gas prices go down, people buy huge cars, and when gas prices go way high people buy more fuel efficient cars so I'm just on a certain level, I would love it to go way, way higher," said Todd Wade, a Baltimore City resident.

Overall, people are just looking for assurance.

"I hope it becomes more stable, instead of going up and down. I think that the most stressful part for people is not knowing if it'll change," said Zhang

Currently, the average price of regular gas is $4.27. That's 59 cents down from a month ago.

While prices continue to decrease, economists recommend trying to save.