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Gas Prices Drop - Will It Continue?
   posted 4:57 pm Tue July 29, 2008 - Lower Paxton Twp., Pa.
   reporter: Dennis Buterbaugh      posted by: Bryan Peach
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Gas prices are dropping in the midstate. Petroleum experts said the only way prices would come down is if we drove less. Guess what? We're driving less.

When it's time to fill up, we haven't had good news in quite a while. But there is now. A station in Lower Paxton Township that sold gas for almost $4 a gallon a couple of weeks ago now sells if for $3.79.

"It's definitely a lot better than it was, almost four dollars practically," said pizza delivery driver Ian Twiford of Lower Paxtown Township. "But it's still not two dollars or anything like that. I wish it was."

Further away from the interstates, the price drop is even bigger. $3.77 at a station on Jonestown Road. The lowest price we saw was $3.57 a gallon for regular at the Hess Station in Hampden Township.

AAA says we are all driving about four percent less now compared to one year ago. More people are also switching to smaller cars. That's enough to bring prices down.

"If I drive every day, it's about seventy miles for a round trip," said Robin Laudenslager of Millersburg as she filled her car's tank on Front Street in Harrisburg. "Saving 20 or 30 cents a gallon adds up."

Crude oil prices are also falling - it's about $121 dollars a barrel now, but three weeks ago it was $147. Some analysts say crude and gas prices will drop even more.

Diesel prices are also down, but some truck drivers said they won't read too much into that.

"Oh, it's going to go back up," said Johnny Davis of Georgia as he filled up near Harrisburg. "They're making way too much money and we're suffering too much - so yeah, it's going to go up."

People driving fewer miles means the federal government is collecting less gas tax. That could delay some highway improvement projects because the tax revenue is down.

 


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