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Gas Prices in Limbo: How Low Will They Go?

FOX 40 News spoke with a national oil watchdog group and shared it's findings with Jackson drivers. The group expects prices won't be low for long.

By Matt Johnson

Gas prices are going down, down, down, but FOX 40 News found that trend likely won't last according to national industry insiders.

FOX 40 News spoke with a top industry researcher in California who says prices here in Mississippi could soon be going right back up to the highs near $4.00 a gallon we saw just two months ago.

The national average for a gallon of gas right now is hovering around $2.00 a gallon. At the Exxon station on Highway 80 at MetroCenter Mall, FOX 40 News found gas for $1.89. Drivers are loving the lower prices, but don't necessarily expect them to last.

"Everything is unstable right now so it's hard to tell," said driver Juan Gray.

Gray filled up his SUV for a little more than $40--that's a cost far lower than he's seen in a long time.

"I hope they either stay the same or continue to drop," he said.

When asked how low prices will go, Gray guessed about $1.49. Another driver guessed about $1.70.

"There's absolutely no predicting how low it will go," said Judy Dugan.

Dugan is research director for "Oil Watchdog," a nonprofit, nonpartisan foundation for taxpayer and consumer rights based in Los Angeles.

FOX 40 News spoke with Dugan over the phone and asked where she sees gas prices going.

"You can't say exactly how low it will go, but what is certain is that it won't be this low forever. We will certainly be back at $3.80, we will be at $4.00.

Dugan works with Congress and the oil companies and lobbies for consumer rights. She said despite popular belief that prices are related to supply and demand, it's strictly the economy impacting the price at the pump.

"Any drop we've seen just shows us how ridiculous the price was when oil was at its high [price]," Dugan said.

Dugan said when the economy recovers, prices at the pump will probably go back up. As the DOW drops, prices will, too.

For now, drivers are sensing relief at the pump Dugan said, but they're still uncertain.

"People are immensly relieved right now, but I don't think anybody's willing to say--whew--it's over."

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