Lower Fuel Prices Will Only Offer Savings at the Pump

Oil plummeting may seem on the surface - good for the consumer. Image courtesy of Market Realist.

Oil plummeting may seem on the surface – good for the consumer. Image courtesy of Market Realist.

 

Even though oil barrel prices have dropped almost 50 percent since June, consumers may not reap the benefits as one might think.

Although paying less at the pump allows for more cash in your wallet for the present time, companies are already talking about layoffs because of the overstock in our reserves.

Finch Ratings and other economic experts suggest the slump in prices can be quite detrimental to state systems that have been existing on budgets derived from oil sales.

What This Means for The People

A deficit in any budget means program cuts, jobs lost, or freezes in hiring. So in the end, those dropping numbers at the local gas station end up having The People pay more in other ways.

Why We Can’t Turn Back the Clock

One of the main reasons we can’t go back to a more affordable way of life is that although gas prices were the reason for most companies raising prices, these same companies have no plans on dropping prices because they want an even bigger profit.

Our Environment Also Pays the Cost

Although there is often talk about utilizing clean energy sources (such as wind or solar), the bottom line is that government officials know their budgets will be dramatically cut if we do so. Ninety percent of Alaska’s government budget is funded by their oil sales. So why would they follow through with any initiative to use clean energy that would replace their cash cow?

 Don’t Expect to Fly Cheaper

Remember when airfares became (and still are) unbelievably higher because of the price of oil? With the prior years of airlines consolidating and supposedly going through “hard times,” they know people will continue to pay their airfare prices of today and reap the profits.

In the end, farmers that have often pre-purchased their fuel or other supplies prior to the drop in oil, cannot pass the savings on to the consumer. Subsidized programs most needed for lower income residents may become non-existent.  So who are the real winners when the oil prices drop?

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About thewritegirlforthejob

During college, I began my writing career as a reporter for a newspaper. After graduating with honors in 2004, I continued my journalism and public relations education at Barry University and Empire State College(graduating with a BA). As a freelance writer, I have over 100+ published works and have had the honor of authoring the commissioned book, History Restored. Since starting my writing career, I've edited more books for authors rather than complete my own - since work comes first before I have the pleasure to write. I've been very lucky to be given the gift of having a very supportive family that has allowed me to share my passion of creating and writing and can already see my youngest wanting a page of her own soon.
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