Oil prices have been going down steadily and consumers have been wondering why gasoline prices haven’t been following.

Part of it is obviously because your local service station has already bought its gas supply at a higher price and it isn’t until these stocks are depleted and replenished at a lower cost that you will see any savings at the pump. Another factor is that demand remains steady despite the price increases, which creates little incentive to lower prices. Eventually, as some stations lower prices others follow, which is what is happening right now.

Gas pump numbers finally have started to reflect the decline in oil prices with the national average per gallon of gasoline price down to $2.33 for regular. If that still seems high, consider last year’s prices of over $3 per gallon.

Ford has announced that its small car, the Focus, will be revised and upgraded for 2008. Designed initially for Europe, the model has not been completely re-designed for America before and the idea is that, by offering more features for less money, sales will take off again after sliding recently.

The small car segment of the US market has not been a money earner for manufacturers in the past but the hope is that increasing gas prices will re-vitalize sales of cars like the Focus. Ford have not been doing well recently and are looking for ways to improve their position.

Having had experience of the Focus, I must admit to a wry smile and the thought that any improvement to it would be a step in the right direction. Just do a search for problems with it and see what you come up with…

The direction of gas prices has everybody guessing and conspiracy theories abound. As gas prices have inched up a few cents this last week, some are using it to fuel their theory that Republicans, most notably George Bush, have used their influence to keep gas prices low before the election but now that elections are over and the Dems have Congress, they have given the nod and prices will creep back up.

Others reckon that gas prices may continue to go down, based on the theory that Democrats are into pushing conservation. They speculate that Democrats will focus on hybrid vehicles, conservation and bringing ethanol in as a contender fuel, which will lower the demand and ease prices on gasoline.

As usual, the consumer watches his fuel gauge and the prices on the sign at the gas station, while the politicians and market experts argue.

Despite OPEC’s decision to cut production, the price of a barrel of oil continues to fall and so do gasoline prices. Prices have fallen even further in the last week, for a total of an average of 25 cents for the month of October.

Gas reached peaks of over $3 per gallon earlier in the year, but with gas now averaging about $2.20 per gallon nationwide, consumers are breathing a sigh of relief and their confidence in the economy shows in the market. But gas prices affect more than the general economy and decisions about long road trips.

When gas prices were rising the effects on personal finance were measurable according to Wayne Hochwarter, an associate professor of management in the College of Business at Florida State University.

Hochwarter’s study found that although the consumption of gasoline did not decrease, expenses in other areas of personal finance changed. The cost of gas forced consumers to rethink the way they spend money and at times cut back on necessities as well as non-essential expenditures.

Hochwarter also found that the stress of such worries negatively affected employees at work, leading to more job stress, lower job performance and depression.

Read about Hochwarter’s study here. Then, if you are in Oklahoma City, go fill your tank for $1.81 per gallon.