DETROIT — A barrel of crude oil was $115 in June of 2014. Seven months later, it is selling for less than $50. The sharp dip in price meant relief to oil-consuming nations like China and the United States and agony to economies reliant on gas sales, including Russia and Iran. 

But regardless of politics, customers are loving the new prices and local gas station owners are generally perceiving them  positively. 

Ali Jawad, president of Armada Oil & Gas Company, said low demand and higher production are driving the oil prices downward. He added that increasing the oil output worldwide might be a deliberate move to politically pressure countries that rely on oil exports for income.

Jawad added that low oil prices benefit the economy. 

“Consumers will spend what they save on gas on other things, which is good for local businesses” he said. “In 2008, when gas was $4.50 a gallon, everything went sour.”

He added that the impact of the drop in price has not yet been felt because people are afraid that the current prices will spike back up. However, Jawad alsso said that he expects the prices to remain below $3 per gallon for a few years, given the abundance of oil in the world.

“My prediction is that the price will end up lingering between $2.25  and $2.75 (per gallon) for the next four years,” he said. “I think it will stay under $2 for the next few months. I expect there will be more federal and state taxes on gas, because it is so low that the government can tax it without upsetting the consumers.”

Jawad said the lower gas price is “really good” for gas stations. “Customers will buy more gas and spend more money inside the store,” he said. 

But he also said competition between gas stations is driving the price down to a harmful point for business. 

“I wish people would rise to the occasion and take advantage of this drop in prices,” He said. “Gas stations are competing over nickels and dimes and have been killing each other’s business for 15 years.”

Nidal Dawud, who owns a car dealership and a gas station in Detroit, echoed Jawad’s point that competition is diminishing the benefits from low oil prices. 

“We bought 10,000 gallons at a higher price and now we cannot afford to put the gas below $2 a gallon,” he said. “Gas stations around us are selling it as low as $1.75. Competition is really hurting us.”

As for his car dealership business, Dawud said low gas prices usually lead to higher demands on bigger cars. 

“If the prices remain this way, it will help us a lot, especially with the sale of trucks and 8-cylinder vehicles,” said Dawud. 

However, the dip in gas prices has not yet affected his dealership. 

“People are asking around about big cars, but consumers are still cautious,” he said. “They don’t want to buy a truck and get stuck with it if gas prices go up again.”

in an interview with the Detroit News last week, President Obama warned that low oil prices will not last indefinitely, and promoted fuel-efficient cars.

“I would strongly advise American consumers to continue to think about how you save money at the pump, because it is good for the environment, it’s good for family pocketbooks and if you go back to old habits and suddenly gas is back at $3.50, you are going to not be real happy,” the president said.

Mohamad Fawaz, the owner of a Detroit gas station, said the lower prices drive up the volume of sale but shrink the business’s cash flow. 

“If you have $45,000 in gas inventory and the price drops, now it is worth less,” he said. “But lower prices mean lower fees and lower sales tax, so it is over all good for business.” 

He added that gas stations favor stable prices. “We don’t want the prices to fluctuate. I want them to be steady.”

Fawaz said cheaper gas does not necessarily mean that customers will spend less money at the pump and more inside the  store. 

“Many customers are not price-conscious,” he said. “If they usually spend $20 on gas, they’ll still spend $20. It just means they are getting more gallons.”

Fawaz also complained of competition. He said some gas stations rushed to drop their prices drastically after the decrease in oil prices.

“Some people want to break even on gas and make their money in the store,” he said. “That strategy hurts in the long run. We should make some money on gas, especially when you are making such a huge investment. Our expenses are very high— insurance, fees, storage.” 

While gas station owners might have some reservations about the new prices, consumers are happy about the cheap gas. Many social media users are posting pictures of the low amount they paid at the pump after filing up their gas tanks. 

“You’ve got to love it when you can fill up your car with $20,” said Ali Hamade, who was pumping gas at a station on Greenfield in Dearborn that was selling a gallon for $1.68 per gallon. “A couple of months ago the price was double of what it is now.”

Dearborn resident Matt Rymond describe the reduced gas prices as “a relief.”

“I do think it’s unfair that many gas station owners make little to nothing on gas,” he said. “I don’t have a great solution in how to balance international oil prices, though.”