The average price of regular unleaded gasoline in Nashville fell below $3 a gallon on Monday, the lowest it's been since February, and it was all smiles at the pumps as drivers reveled in the lower prices.
"I'm tickled," said Georgia Wallace, 81, as she prepared to put gas into her aging Nissan Maxima at a station in West Nashville at $2.999 a gallon. "It's surprising to me that anything is going down these days."
Nashville's average price was $2.95 per gallon for regular unleaded on Monday, and it's likely to head lower before the holidays. Prices have fallen an average of $1.14 a gallon in the Nashville area in the past month, according to a survey by AAA.
The lower prices will bring immediate aid to strained family budgets, and could help build consumer confidence, said University of Tennessee economist Bill Fox.
Eduardo Lobato, 28, filling his Chevrolet Tahoe SUV, said a full tank costs him about $20 less than it did a month ago. "This is a big difference," said Lobato, a restaurant worker. "I just hope it stays this way."
AAA spokesman Randy Bly expects prices to decline more over the next few weeks, although probably not at the fast pace motorists have seen in the last month.
Lower gas prices would be a bonus for travelers at Thanksgiving and Christmas, with pump prices possibly in the mid-$2.50s per gallon or lower in much of Tennessee, Bly said.
At a Kangaroo Express store off Interstate 24 in Antioch, the price for regular on Monday was $2.899, and clerk Kesheila Boyd said, "My customers are loving it. The pumps are loading up."
"It's wonderful," said Ben Cunningham, 33, a car-stereo installer who was re fueling his Dodge Charger. "I drive a lot in my work, so any break in gas prices helps."
National average is lowerStill, Nashville's average price remains slightly above the national average of $2.92 per gallon, AAA said. And some parts of the country have much lower prices. The lowest state average was $2.485, in Oklahoma, and 35 states are now under the $3-per-gallon mark, Bly said.
During the big summer holidays — Memorial Day, July Fourth and Labor Day — pump prices were around $4 a gallon and traffic was significantly down. "I think the consumer is going to enjoy much lower gas prices," Bly said.
"Presumably gas prices going down will have some effect on car sales," said Fox, the UT economist. "But I never thought that gas prices alone were driving car sales down. There still are other factors in the economy affecting big-ticket purchases like cars, including unemployment and the tight credit market."
While car sales might tick upward, Fox doesn't believe consumers will rush out and start buying big trucks and SUVs again anytime soon.
"People aren't going to forget the high gas prices that fast," he said. "But overall, consumer memories will be somewhat short."
"I'm appreciating these lower prices, and I think gas will get down to $2.50" a gallon, said Tommy Judkins, 62, a retired painter filling up a Toyota Celica in West Nashville on Monday.
"But it's a long way from the first gasoline I remember buying," he said. "It was 24.9 cents a gallon. Now, those were the days."
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