Alabama consumers have already been benefiting from the declining price of gasoline this summer. In fact, the price at the pump is down 36 cents per gallon from the same time last year. But the direct benefits of a cheaper gas bill could be just the beginning. Because of the decline, Alabamians might soon benefit at the grocery store checkout line, too.
The potential cut in grocery bills would stem from the lower costs incurred by Alabama farmers. Decreased gas prices lead to greatly lower production costs for agriculture workers, which can be passed on to consumers in the form of finished products. All of these factors could combine to make local produce fairly cheap compared to the recent past.
John McMillan, Alabama’s Agricultural Commissioner, expressed his optimism for decreasing production costs.
“This whole thing with the gas, oil and supply is favorable right now,” he told the Alabama News Network. “People that live in the city, that think their food comes from the grocery store, and doesn’t realize what all goes into making that happen.”
McMillan explained that in order for consumers to reap the benefits of a producer-friendly cost market, prices will have to stay low for several months. “Margins are so tight in produce, very very tight, for the farmers especially,” he said. “There’s not much profit there. So I don’t think, I don’t think we’ll see any real difference in prices at the store.”
Where oil futures go is anyone’s guess. But if recent downward trends continue, Alabamians of all types could enjoy a significant break when paying to feed their families.
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