Out of Gas

By Econ70 | 03/20/2012

While gasoline prices have risen dramatically, and now average $3.80 a gallon, its impact has been muted. This is because natural gas prices have collapsed, falling 42% from a year ago, due to abundant supply and an unusually warm winter. I estimate that collapsing natural gas prices have mitigated two-thirds of the run-up in gasoline…

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