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Gas prices continue slow decline in Mid-South; drop expected to continue through summer

Some Memphis-area gas stations are near or below $4 a gallon. Economists believe we could see near $3 a gallon in September.

MEMPHIS, Tenn. — Memphis-area economists believe conditions are ripe for gas prices to fall continually between now and Labor Day. 

That's especially important in Memphis, a distribution center that relies on trucking and could fuel price drops on other things such as food.

Experts believe even more relief at the pump - $3 a gallon - is possible by the fall with continued signs of relief on the horizon.

"I think these are very positive trends, they are positive for the consumers," Dr. John Gnuschke, an economist based in Memphis, said Tuesday. 

He believed two major factors are at play for the recent falling Mid-South gas prices.

"It's a weaker economy, it's gas companies being a little more sensitive about their pricing because we know they were price gouging and it was increased production," Dr. Gnuschke added.

He said it's important for drivers to keep a close eye and take advantage of the lowest gas prices. Gas stations just a mile or so apart on Summer Avenue differed by more than 60 cents a gallon.

Memphis drivers gladly welcomed any price drops these days.

"There's so many other expenses ... that's kind of been adding up, so getting lower costs makes life a little better," Liliana Cardoso said.

But other drivers said there's a long way to go before they'll feel optimistic when their tank is close to empty.

"It's not good, I don't feel that good about it. Usually, I fill up with gas. Today, I'm going $20," Ahmad Onuku said.

Even though price trends are encouraging, there's a long way to go to get where prices were on July 5, 2021, when the average price in Memphis for a regular gallon of unleaded stood at $2.93.

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