Here’s why the price of gas has fallen so much.

Gasoline consumption in the U.S. has fallen by 75% since 1998:

U.S. “gasoline consumption” – as measured by the U.S. Energy Information Administration (EIA) itself – has plummeted by nearly 75%, from its all-time peak in July of 1998. A near-75% collapse in U.S. gasoline consumption has occurred in little more than 15 years.

Less demand.  More supply.  Price falls.

You can’t break the laws of economics.

 

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Categories: Econ 101, Economics

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