Low gas prices could be here to stay

Increasing supply, reduced demand keeping costs down

HOLYOKE, Mass. (WWLP) – Would it surprise you to hear that prices could continue to drop during the next few years?

Johnny Keayroud, the owner of the Racing Mart service station at Main and Cabot Streets in Holyoke, told 22News that it’s possible prices will continue going down for the next three or four years.

“It comes down to supply and demand. Demand’s been low, there hasn’t been a lot of demand, and there’s excellent supply, the numbers are looking good,” Keayroud said.

Major oil producer Saudi Arabia has resisted calls by other oil producing nations to cut back on oil production; driving the cost for a barrel of oil down, and therefore keeping gas prices lower.

Keayroud explained that low prices at the pump aren’t just good for drivers, it’s good for him, too.  A service station operator’s profit margin goes up as gas prices go down.

To find out the lowest gas prices near you, check out the 22News Pump Price Patrol.

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