With the election days away and gas prices down by nearly a dollar in the past month, conspiracy theories are flying across the web about an effort by Republicans to manipulate prices in order to win the election. But the real reason for the dive in gas prices is nothing more than a bit of Economics 101.

As economies across the globe have weakened due to the tightening of credit supplies, global demand has significantly slowed. Simply put, no one is buying as much gasoline as they were earlier this year, leading to extra supply and thus lower prices.

To compound the effect, here in the U.S. people just aren’t driving as much as they used to. Whether it’s because of tighter budgets or rising unemployment leaving less people who need to drive to work, the effect is clear – in August, Americans drove 15 billion less miles than they drove a year ago.

Late last week, OPEC, the cartel of oil-producing nations, announced a plan to reduce oil output to get prices at the pump back on the rise. But prices barely budged, exemplifying just how much economic factors are behind this extraordinary move in oil.

If you have questions about gas prices in your area, how to compare prices or where you can get the best bang for your buck, be sure to visit our Forums, where you can ask our experts and each other. If you haven’t registered for our online community, you can do so by clicking here. It’s free and it only takes a minute.

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