Petrowski is betting that the slide in oil prices will continue to fall dramatically [image-nocss] and overshoot on the low side, said the report. "There is a better than 25% probability that we'll see gas go as low as $1 a gallon sometime after the first of the year," he said.
Gulf Oil, which is based in Newton, Mass., distributes fuel through a network of 1,800 Gulf gas stations throughout the Northeast.
Dramatically lower gasoline prices would be quite a rebate check for consumers, according to Petrowski. He said the drop may help ease the country out of the recession. "The price of oil has a tremendous impact on discretionary consumer spending. I think it hurt us tremendously during July and August," he told the news outlet.
That's when pain at the pump prompted motorists to cut back their travel by 9%, the report said. But Americans are conserving as much as now.
"But long term, we need to have oil prices at an equilibrium price that will encourage new production, will encourage efficiency and will encourage alternative sources," Petrowski said.
He said he hopes that the motivation to create alternative energy sources will not be lost if pump prices continue to fall.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.