Falling gas prices: The losers and winners

HARRISBURG, Pa. (WHTM) – The average for a gallon of regular gas in the Midstate was $3.27 back in October, and now just three months later it has dropped by more than a dollar.

With Pennsylvania’s 2015 fuel tax increase in mind, how have prices managed to go so low, and could they continue to drop?

According to the Associated Petroleum Industries of Pennsylvania, the drop in price is directly connected to the flood of oil being extracted at home.

During the current year, it’s predicted that U.S. production will hit 9.5 million barrels per day. That is nearly twice the rate of production of just four years ago.

One of the cheapest places to get gas Tuesday was at the Pioneer Fuel stop near Carlisle.

That’s also where we found state Senator and 2013-2014 chair of the Senate Transportation Committee, John Wozniak (D-Cambria).

“I have to travel no matter what, no matter what the price was, but hey, you know what? This is nice for the consumers and I think it keeps a little jingle in everyone’s pockets, and we are still fixing our roads an bridges,” he said after filling up his car’s tank.

So could prices continue to fall?

The American Petroleum Institute assures that prices will have no choice but to stabilize.

If costs were to get too low, then U.S. oil companies could not survive. Even as things are, some are implementing hiring freezes and if they were to go under, prices would likely skyrocket.

Many experts are also giving back-handed credit to Middle Eastern oil companies for current pleasure at the pump, noting that if they had not set the price of a barrel so high, the United States and others would have not been so eager, even desperate, to invest in alternative sources.

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