Gasoline down below $2.20 and headed for $1.99 before Christmas or maybe even Thanksgiving!

Retail gasoline price declines continue to ratchet downwards, with the AAA Daily Fuel Gauge Report price falling to $2.178.

December RBOB unleaded gasoline futures are at $1.2502, indicating that retail prices are headed for $1.85 to $1.90 within a few weeks, about 30 cents below the current price level.

That means that we will be seeing $1.99 retail gasoline well before Christmas, possibly even before Thanksgiving! That "1" handle on the price will certainly add at least a modest degree of holiday cheer to the average consumer.

Gasoline has declined by $1.94 or -47% from its July 17, 2008 peak of $4.114.

The media is not giving these gasoline price declines much press, but all of this extra cash in the pockets of consumers will help to buoy consumer sentiment and domestic spending as well as boosting GDP (or at least limiting its decline) by reducing the subtraction due to imports of crude oil. Businesses and government will benefit from the steep price declines as well.

-- Jack Krupansky