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Paying less at the pump is putting money back into the local economy

Posted at 8:38 PM, Nov 03, 2014
and last updated 2014-11-03 20:38:05-05

KALAMAZOO, Mich. -- If you're low on gas, now is probably the time to fill up.

West Michigan gas prices have dropped almost 17 cents in the past week, putting money back in the pockets of drivers, non-profits and businesses.

Gas prices are roughly 42 cents per gallon lower than this day a year ago, according to Gasbuddy.com.  The price nationally has fallen almost 4 cents in the past week; in Michigan, it has dropped 16 cents. 

Tiana Davidson at the American Red Cross in the Greater Kalamazoo area, said the low gas prices are allowing the Red Cross to allocate their money into other programs throughout the entire community. 

"You know what gas prices do to us when they go down. It’s like a family's budget," said Davidson. "We’re allowed now to spend that money in other places." 

Those places include the free veterans transportation and disaster relief programs.

"With lower gas prices, it just  helps our bottom line to continue to put those dollars into the programs to serve the residents that we serve," said Davidson.

Prices in Kalamazoo have dropped below $2.75 per gallon.  One pizza delivery driver said they spend almost $1,000 each week on gas.

"And it kind of raised their wage by lowering gas prices," said Jeff Sirk, assistant manager at Hungry Howie's Pizza in Kalamazoo. "And it's made them happier, even better employees."

Rob Adams, president of Adams Heating and Air Conditioning, is looking to take advantage of the low gas prices.

"Actually, we’re hoping to expand a little bit more for tax time, possibly add another vehicle, and put another guy on," said Adams.

Adams spends almost $5,000 every month on gas alone and says current gas prices have cut his costs 15 percent.

"Obviously 15 percent for five vehicles that are on the road, that’s adding up to $500 to $1,000 a month, depending on how much we’re driving," said Adams.

Gas prices are lower because oil is again threatening to drop below $80 a barrel.  But Gasbuddy.com analysts expect the prices will come back up mid-December, closer to the holidays.