MERIDIAN, Miss.–The lowest gas prices in the country were in Meridian this week. You could buy it for $1.59 for a gallon of regular at Maples Gas and $1.61 at the Shell. Gas may go even lower, thanks to several factors, said Don Redmon, spokesperson for AAA Mississippi, who tracks gas prices.
Redmon said Mississippi’s average was $1.93 and you could see it as low as $1.80.
“There’s no doubt that this has been an economic stimulus for a lot of families,” he said. “We’re talking about some families saving as much as $150 a month that was otherwise going in the gas tank.”
DON REDMON SPEAKS
Redmon said there were two main factors that drove the price down last month. One was the expansion of domestic oil production.
“That was one of the leading indicators that started changing the landscape in global oil production.”
Redmon said another factor was Saudi Arabia’s shift in philosophy. They no longer hold prices at $100 a barrel for crude oil. Instead they are going for market share.
“Adding in just recent weeks to all of this is a major shake-up in the Chinese economy. Any time an economy slows down so does the demand for energy. That’s been the big gorilla in the room right now for the latest drop in prices. It’s just that there’s no demand in China. Their economy is absolutely on shaky ground.”
He said if prices do go much lower, it could be an indication that there’s something major wrong with the economy.