Despite recent cold temperatures, this winter's generally warmer-than-average temperatures have driven gas prices down to an average of two dollars per gallon and lowered the cost of heating homes in Madison.
Madison residents have seen gas prices drop nearly $.35 per gallon over the last month. Pam Moen, public affairs director for AAA of Wisconsin, said the last time gas prices in Madison fell below two dollars per gallon was in February 2005. According to Moen, the trend is largely due to the warm December temperatures and will probably continue for some time.
""These lower gas prices are welcomed news for anyone who drives a car,"" Moen said.
In addition to the fall in crude oil, natural gas—used to heat homes—has plummeted in demand and price as well, according to Steve Kraus, spokesperson for Madison Gas and Electric. Kraus said Madison homeowners can expect to see major changes in their heating bills this winter.
""People can expect to save 25 percent,"" Kraus said. ""For homeowners that means about $200.""
Many gas stations around Madison have fallen below two dollars. According to madisongasprices.com, $1.97 is the cheapest price in the city and $2.02 is the most expensive. The website claims the most expensive place to buy gas in America is in Hollywood, Calif., where it currently costs $2.72.
With the expected drops in crude oil to continue, Madison-area gas stations are seeing more people fill up at the pump. Greg Turner, assistant manager for the Mobil gas station located at 636 W. Washington Ave., said, ""People buy more in bulk when gas is cheaper.""
Turner said that when gas was more expensive he saw customers buy gas in small amounts.
""They bought just enough to get home,"" he said, but added that ""the American people are going to buy gas no matter what the price.""
Moen agreed people will buy gas regardless of the price. She said just last August gas was at an all-time high of $3.18 per gallon. However, she said crude oil stockpiles have become larger and the demand has dropped, so there is reason to believe high prices will not return for some time.
""For the short term, until demand picks up and unless something dramatic happens, I think we can expect this decline to continue,"" Moen said.
