How low can gas prices go?

Gas prices are falling rapidly. When will they stop?

Back in June we were paying a record high $4.60. Now we can find gas prices lower than $1.75, and they are falling every day. What is the cause? The economic recession and the drop in the cost of crude oil are the main reasons. Crude oil was selling for $147 a barrel in July, and sold for $47 a barrel on Wednesday.

Will these unthinkable prices continue to fall? "There's a bottom out there somewhere," says AAA spokesman Michael Geeser, pointing out that prices can't fall below 45 cents a gallon because that's how much we pay in taxes. "We know gas will never go below that mark."

Not many are willing to take a jab at predicting the bottom, but most of those who do say prices will continue to drop until our 401(k)s stabilize and our rising layoffs die off.

In the meantime, think ample supplies and cheap gas. In California, more than 1 million barrels a day are being produced, far more than what motorists need. According to Mercury News, Chuck Brassfield sold 70,000 gallons of gas at his Capitol Premier Car Wash station on Capitol Expressway in San Jose last month. More than 101,000 gallons were sold a year ago.

How do consumers feel about cheap gas? Sarah Jowett almost cried when it cost her $25 to fill up her 1992 Camry, instead of $55. "I think that the gas prices going down was about as good as any stimulus package, or better." Rick Roberts of Los Banos, CA says,"I am quite happy, that the fuel costs have come down as low as they are." Roberts, a commuter spent more than $1200 for gas in July. Now he spends about $560.