SPRINGDALE -- Christmas came a little early for Northwest Arkansas drivers -- gasoline prices have dropped below $2 for the first time in about six years.
"It is a Christmas gift," said Kathy Deck, director of the Center for Business and Economic Research at the Sam M. Walton College of Business at the University of Arkansas.
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A survey found that among people planning to travel, 23 percent said record-low gas prices are impacting their plans. This includes traveling greater distances (29 percent); purchasing more gifts (35 percent); spending extra on food (11 percent) and even upgrading accommodations (8 percent).
Source: GasBuddy.com
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Nationwide, the lower prices mean drivers will save about $200 million a day, said Michael J. Right, vice president of public affairs at AAA Missouri. In Arkansas, the price has plummeted by about $1.07 since the end of June, said Patrick DeHaan, senior petroleum analyst with GasBuddy.com.
GasBuddy.com is a leading provider of retail fuel pricing information and data, according to the group's website.
"You are talking about substantial savings," DeHaan said.
Most people plan to save or pay off debt with the savings, but some plan to splurge on Christmas gifts, DeHaan said. Overall travel for the holiday season is expected to increase about 4 percent this year over last year, Right said. About 90 percent of travelers plan to drive during Christmas, according to a year-end travel forecast by AAA and IHS, a global market information and analytics company.
As of Wednesday afternoon, gasoline prices in Springdale were around $1.96 at several locations. Stations in Rogers, Bentonville and Fayetteville were starting to follow, with prices dipping under $2 by Wednesday evening. Northwest Arkansas residents took to social media outlets to post photographs of gasoline prices.
Just after 2 p.m. Wednesday, drivers were braving sleet and rain to grab cheap gasoline. Vehicles lined up from the pumps at the Walmart on Elm Springs Road to 48th Street in Springdale. At the Shell station near Macadoodles, more vehicles waited, sometimes three deep per pump, for the chance to fill up.
Even people with diesel engines stopped. Diesel prices haven't fallen to the same degree as gasoline, DeHaan said, but Nathan Kelley said diesel at the Elm Springs exit along Interstate 49 was the cheapest he had seen at $2.55.
Kelley works for Brian Hoskins Trucking and Excav in Fayetteville, which does a lot of dirt work, he said. Having cheap fuel helps business.
Nearby, Sarah Istre of Springdale said she was going to fill the tank. Cheap gasoline is just in time for Christmas, she said.
Statewide, gasoline prices are an average of $2.37, DeHaan said. Even with cheaper prices, Arkansas's fuel costs more than surrounding states because of a higher sales tax attached to gasoline, he said.
Factors contributing to the falling price of gasoline nationwide include an increase in U.S. oil production and a decline in demand for gasoline, thanks in part to more fuel efficient cars, Right said. People also aren't driving as much as they did before the recession either, he said.
Prices are likely to fall further and stay low until the summer driving season, Deck said. Although gasoline prices are unlikely to have much impact on sales tax revenue, it does mean more money for Northwest Arkansans, she said.
NW News on 12/18/2014