Low gas prices give local economy a boost - Western Mass News - WGGB/WSHM

Low gas prices give local economy a boost

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SPRINGFIELD, MA (WGGB/WSHM) -

Drivers say they'll travel more by car this time of year because gas prices are so low. Most pump areas are just $2 per gallon. 

Megan White and her friends will be taking their yearly road trip to Georgia in just a few days. Budgeting for gas has been tough in the past. But this year, they'll be cutting costs almost in half.

"Yeah, well I mean last year we spent almost $600 in gas going down there so, I think we calculated it because we're taking my car this year, it's almost gonna be like half the price for us in gas," said White.  

The low gas prices have many like Megan, spending their extra cash elsewhere. We sat down with Western New England University Economics Professor Karl Petrick.

"It's based on supply and demand and what the market thinks is going to happen to supply and demand. So, we have with economic problems and a downturn in China, the Federal Reserve statement on Friday about not raising interest rates," said Petrick.

Petrick says in turn our local economy could feel a boost.

"Low gas prices are always good for people's budgets and other expenses that we have so that would be very comfortable for people. We certainly saw over the holiday weekend they were more willing to travel because of the lower prices," said Petrick. 

Low oil prices also affect the cost of home heating oil, just in time for winter. Other drivers say the savings will push them to take more road trips.

Copyright 2015 Western Mass News (Meredith Corporation). All rights reserved.

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