Gas prices

Gasoline prices have dropped dramatically in recent weeks, falling well below $3 a gallon. In light of the trend for the past eight years of higher gas prices, the dip is a welcome bit of relief for motorists.

It's an interesting part of human nature how we relate to such things as under-$3-a-gallon gas. Not too long we would have thought paying more than $2 a gallon was outrageous. After seeing pump prices at the $4-a-gallon mark, we are breathing a collective sigh of relief these days.

Part of the current decline in gas prices is due to decreased demand from U.S. motorists who have found ways to substantially limit their gasoline consumption. Experts say that American consumers are likely to continue their frugal ways, even with lower prices. That's because the long-term trend weighs heavier than the short-term respite.

Automakers believe gas prices will make a huge difference in consumers' purchasing decisions in future years. They are switching production to more fuel-efficient models and developing more gas-electric hybrid models.

The drop in demand for gas is something that is closely watched by oil-producing nations who are contemplating a production cutback to push prices higher. It's difficult to say where the breaking point is, but Americans has shown they can find ways to use less fuel when they have to.