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Gas Prices Drop by Dan Martin

It's a sight for sore eyes in the City of Salem.  Regular unleaded gasoline going for $3.78 and $3.79 per gallon.

"It's been $3.79 now for like two days here, this is the second day that it's been $3.79 so, I thought I better get it now while I can.", says April Mazalic of Mechanicstown.

So why the dip in prices at the pump?  Experts say it's not because of any storms or speculation, it's much simpler than that;  people are buying less gas.

"You have four dollar a gallon gasoline, you have five dollar a gallon diesel fuel, it is finally really starting to have a trickle-down effect on the economy so then consumption's down, so when consumption is down and inventories build, you know supply and demand, you can figure it out from there.", says Paul Lyden, VP of Lyden Oil Company.

Regardless of the reason for the price drop, it's a true sign of the times when people can get excited to pay $3.80 for a gallon of gas.

"Yeah it does, it's a psychological thing, you say ooohh it's under four bucks, it's under 90 cents, so we like that.", says Nick Cosma of Damascus while waiting in line to fill-up.

But while this seems like good news for the consumer, slower gasoline sales mean fewer tax dollars kicking back to the state.

"We're in a catch-22 in some cases, you know when the sales of gasoline go down, the income for the states go down, so they're going to want to raise the gas tax.", says Lyden.

Still, April and Nick wouldn't mind seeing fuel prices fall even further.

"I hope they keep lowering it.", says Mazalic.  Cosma adds, "When it gets down to $2.79, it'll be even more exciting....When and IF."

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