Politics

President Obama Warns Americans That Cheap Gas Wont Last Forever

| by Edward Arnold
President Barack Obama.President Barack Obama.

While President Barack Obama wants Americans to enjoy low gas prices, he is warning us we shouldn't expect this forever.

In an exclusive phone interview on Jan. 6 with The Detroit News, the president advised against buying gas-guzzling cars.

“I would strongly advise American consumers to continue to think about how you save money at the pump because it is good for the environment, it’s good for family pocketbooks and if you go back to old habits and suddenly gas is back at $3.50, you are going to not be real happy,” Obama said.

While the President warned that these record low prices won't be around forever, he visited Michigan to talk about the resurgence of the American auto industry.

“America is the No. 1 producer of oil, the No. 1 producer of gas. It’s helping to save drivers about a buck-ten a gallon at the pump over this time last year,” the President said. “And the cars that you make help everybody go a little further on that gallon of gas.”

He is right on how low gas prices are. The U.S. Energy Information Administration says that compared to last year, Americans across the country are saving $1.118 per gallon on average. This chart shows how low gas prices have gone compared to the past five years.

GasBuddy reports that the average price of gas in 2015 will be $2.642, or the lowest since 2009.

Oil prices have seen the biggest decline in three decades, falling 40 percent since June 2014. That statistic might reassure people that gas prices will continue to stay low.

But Obama warns against buying gas-guzzlers because these low prices won't be stable over the long term. Oil prices will eventually go up.

“The American people should not believe that ... demand for oil by China and India and all these emerging countries is going to stay flat. Just demographics tell us demand is going to continue to grow, that over the long term it will grow faster than supply and we have to be smart about our energy policy,” he said.

Source: The Detroit News, GasBuddy, EIA, White House / Photo Credit: EIA via Business Insider, Wikipedia Commons