Gas prices are falling - NBC12 - WWBT - Richmond, VA News On Your Side

Gas prices are falling

RICHMOND, VA (WWBT) - It's one positive result of the economic jitters that have again taken hold.

For the first time in months gas prices are falling.

The national average for a gallon of gas is down to $3.51 a gallon.

In Richmond, it's $3.30 a gallon.

But the fall doesn't mean things are looking up.

Demand for oil is dropping because of growing concerns about the global economy.

Dr. David Urban is the Associate Dean of the School of Business at VCU. He says many people are cutting back on how much gas they use.

"What happens when the economy slows down is people circle the wagons," Urban said. "They stay home, they combine their errands, they take fewer trips."

He says this drop in pump prices is simple supply and demand. When demand drops, so does the price.

Now there is some optimism the money people save at the pump will be spent somewhere else and stimulate the economy. Dr. Urban says that might be wishful thinking. Any savings at the pump will probably only have a small impact on the economy.

Copyright 2011 WWBT NBC12. All rights reserved.

Powered by Frankly