While gasoline price are around $4 per gallon now, a summer wind could portend lower costs, reports High Country Radio. Yes, crude oil is down 15 percent and gas costs have not fallen, however numerous industry experts predict it will happen soon. Some believe the fall can be steady, once it begins.

Less of a demand means lower costs

The supply and demand situation is being re-evaluated by the oil investors that got the price up really high. People tend to be using more public transportation for work and going on fewer road trips. The fuel demands have naturally decreased due to this. The price has been driven down while oil supplies have gone up. Recently, the dollar has gone up. Since oil is costs in United States dollars, foreign investors have not wanted to invest in oil as much. So while the price of crude oil has fallen to less than $100 per barrel for the first time in two months, the higher value of the U.S. dollar has scared away some who would normally buy with foreign currency.

Increase in economy and increase in gas do not occur together

There has been some customer research that shows consumer behavior changing, Dan Kaffine told NPR. Kaffine is an assistant at the Colorado School of Mines as an economics and business professor.

"There is a broad (base of) literature out there that says that, in the short-run, a 10 percent increase in price will lead to roughly a 1 percent decrease in consumption," said Kaffine.

Numerous economists had forecasted that gasoline demand would return to previous amounts as the economy began to improve, but that trend has yet to occur.

Worldwide, oil consumption is growing at an alarming rate, particularly in high-growth areas of the world like China and India, states Aaron Brady, director of global information company IHS-CERA's Global Oil Research Team. It might be bad what happens with gasoline costs. They may end up exploding fairly soon.

Expected by CEOs

In 2009, ExxonMobil CEO Rex Tillerson stated during an Economic Club of Washington speech that improved MPG standards, the rise of hybrid cars and increased use of ethanol have all led to lowered gasoline demand. However, an emerging factor that might be even more significant in the decline is the aging baby boomer population. The fastest growing population is the 65 and older age group, the United States Census Bureau explained. Because there are many reasons to keep that group off the road, they're driving less. This can contain things such as arthritis and decreased vision.

Articles cited

Go Blue Ridge

goblueridge.net/index.php?option=com_content&view=article&id=11956:gas-going-down&catid=1

IHS CERA: Energy Strategy

ihs.com/products/cera/energy-forecasting/global-oil-capacity.aspx

NPR

npr.org/2011/05/08/136069839/as-oil-prices-fall-whats-happening-to-gas-prices