(WTNH) — A big drop in gas prices could be coming, a result of the nuclear deal between world powers, the United States, and Iran. If sanctions are lifted, it could bring a lot more crude oil to our shores.
For about twelve hours a day, six days a week, Jacqueline Stephens, can be found making rounds as an independent cab driver.
“I probably put in $60 (of gas) a day,” she said.
The cost of fuel is an expense she closely monitors.
“It affects all the cab drivers, because we do a lot of driving everyday,” Stephens said.
Relief from rising gas prices may be on the way after a landmark deal between world powers, including the United States, was reached with Iran and was announced Tuesday morning.
“We could see gasoline prices drop as much as 45 cents a gallon,” said Michael J. Fox of Gas & Auto Services Dealers of America.
Fox analyzes fluctuating oil prices and says the nuclear deal could free Iran’s oil, unleashing another 500,000 barrels a day of crude inside the United States. With domestic oil production at all-time highs, Economics 101 says that increased supply means lower prices for consumers.
“Adding another 500,000 barrels to an already flooded market, the only way you’re going get rid of product out there is to drop the price even more,” Fox said.
If prices do eventually drop, it’s welcome news for the crew at Aladdin Pizza in New Haven. Constantly making trips across the city to drop of pies burns a lot of gas.
“It will be good for us,” said Rafeek Abdelhamed, a delivery driver. “Can save a lot of money, more money.”
Congress must first approve the deal before President Obama can lift the sanctions that are currently imposed on Iran. The price drop is expected to come in small increments, and not a big, sudden drop.