> gas, becoming more expensive, made other things cheaper by suppressing demand on them.

Nope, it may suppress demand for "other things" but doesn't make them cheaper. The making of "other things" uses gas too, as do their makers, so they have to increase their prices as well in order to compensate for the increased input costs.

The suppression of demand, if it materializes at all, has a natural floor, as does the reduction of margin - it's natural floor is 0 - past that, reduction of price is impossible. In fact, reduced output usually leads to higher costs per unit produced due to reduced economies of scale, as a result, lower demand often results in higher prices even if gas prices stay the same.