Gas prices are falling and some of the lowest-cost options are coming online, as companies seek to save money on costs.
Read More >Whirlpool said Wednesday that it would close two warehouses and close four more in North Carolina, as it tries to reduce costs.
The company said it would spend $200 million to make the warehouses less expensive and move them to more competitive locations in the future.
WhirlPool will pay $2.75 per gallon on Thursday to make some of its refrigerators at a new facility in the Charlotte area.
Whirlpool’s gas prices were the lowest since June 2016.
Gas stations in North Dakota are also struggling.
The North Dakota Department of Revenue said Wednesday it would impose an excise tax of 7.9 cents per gallon to help offset some of WhirlPool’s higher prices.
Whirling-pools-owned gas stations are not the only retailers suffering as gas prices fall.
A spokeswoman for the company told CNBC Wednesday that the company would continue to work with its gas supplier to reduce the price of gasoline in the region.
“Whirlspool is committed to ensuring its customers are paying fair prices for gas,” spokeswoman Michelle Burd said in an email.
“As we have been saying for years, we have a range of options available to customers, and as we have done in the past, we are offering customers the choice to shop by brand, location, or fuel type.
Whirling-Pool is committed in this effort to provide customers with access to the lowest price on the market.”
Whirl Pool said it is considering an increase in prices to offset the higher cost of gas in the market.
Whacking down gas prices can help retailers offset higher operating costs.
In the short term, gas prices could boost sales, but in the long term, it could hurt consumers, according to analysts.
Gasoline is a major factor in the decline in the US economy.
In September, gas inventories hit a seven-year low of 1.4 billion barrels, according a report from the Energy Information Administration.
The total US supply stood at a record 1.5 billion barrels.
Gas prices have been a factor in other parts of the world, including Brazil, where the country is trying to balance the need for cheap energy with its growing economic woes.
Whashing down the price is also likely to hurt the financials of Whirling Pool, which is facing $6.2 billion in losses this year, according the company.
The shares have been trading at more than 40 cents since December.