Average Gas Price Dips Below $2 a Gallon in These 3 States

Photo (cc) by Orin Zebest

Oil prices continue to fall, and are expected to go lower. Industry analysts say prices could fall as low as about $20 a barrel.

After reporting late last month that the national average gas price could slip to $2 a gallon before the end of the year, AAA reported Monday that statewide average gas prices already had dipped below the $2 mark in three states:

  • South Carolina ($1.94)
  • Mississippi ($1.99)
  • Alabama ($1.99)

The national average hit $2.33 a gallon Monday after falling for 28 consecutive days, according to AAA. That means drivers are paying 6 cents less per gallon than they were one week ago, 33 cents less than one month ago and $1.06 less than one year ago.

AAA attributes lower gas prices to “the relatively low price of crude oil,” which ended last week at $44.63 per barrel on the New York Mercantile Exchange. And the association cites several reasons why it expects prices to continue to fall at the pump as autumn nears:

  • Prices typically slide in the fall due to declining demand caused by the end of the busy summer driving season.
  • The changeover to winter-blend gas, which is cheaper to produce, starts on Sept. 16 in many parts of the country.
  • Consumers continue to benefit from an over-supply of oil and “could experience even lower prices at the pump if the price of crude oil remains relatively low and refineries are able to conduct planned seasonal maintenance without issue.”

The Wall Street Journal reports that gas supplies usually decrease leading up to the switch to winter-blend gas, but stockpiles unexpectedly increased last week, according to the U.S. Energy Information Administration.

Donald Morton, senior vice president at Connecticut-based investment banking firm Herbert J. Sims & Co., tells the WSJ:

“People were very disappointed to see a build last week in inventories and not a draw. … We have a lot of product, period.”

Last week’s increase in inventory came as Goldman Sachs analysts issued a report that said crude oil prices could fall as low as nearly $20 a barrel, CNN Money reports. The firm cited several reasons for lowering its forecast:

  • Members of the Organization of the Petroleum Exporting Countries (OPEC) — especially Saudi Arabia, Iraq and Iran — will produce more oil next year.
  • Non-OPEC oil producers are responding to lower prices better than expected.
  • The growth in the global demand for oil is expected to slow next year, primarily because of China’s economic struggles.

How low have gas prices fallen in your area? Do you expect them to continue to fall? Share your thoughts with us below or on Facebook.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
3 Ways to Get Paid for Searching the Web
3 Ways to Get Paid for Searching the Web

If you’re already doing it anyway, why not get rewarded for it? Here are three great opportunities.

13 Smart Tricks to Organize Every Room of Your Home
13 Smart Tricks to Organize Every Room of Your Home

Get your household organized with these brilliant and inexpensive tricks.

36 Things That Will Be Obsolete Soon
36 Things That Will Be Obsolete Soon

The writing is on the wall for dozens of things we have grown up with.

7 Surprising Advantages of Downsizing as a Retiree
7 Surprising Advantages of Downsizing as a Retiree

Downsizing your home offers many benefits, including some you may not have anticipated.

7 Surprising Features That Boost Your Home Value
7 Surprising Features That Boost Your Home Value

You can add value to your home without hiring a contractor to do expensive renovations.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
10 Things Frugal People Never Buy
10 Things Frugal People Never Buy

If you’re a true tightwad, the mere thought of spending money on these items gives you the willies.

10 Useless Purchases You Need to Stop Making
10 Useless Purchases You Need to Stop Making

You might as well flush your money down the loo if you spend it on these things.

7 Social Security Benefits You May Be Overlooking
7 Social Security Benefits You May Be Overlooking

There’s more to Social Security than retirement benefits.

7 Social Security Rules Everyone Should Know by Now
7 Social Security Rules Everyone Should Know by Now

Confusion over Social Security is a shame, considering how many of us will need this money badly.

If You Find This Thrift Shopping, Buy It
If You Find This Thrift Shopping, Buy It

They don’t make coffee makers like this anymore.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

The 6 Best Investing Apps for Beginners
The 6 Best Investing Apps for Beginners

If you’re looking to ease into investing in the coronavirus economy with just a little money, check out these easy-to-use tools.

14 Things You Should Stop Buying in 2021
14 Things You Should Stop Buying in 2021

These convenient household products come with hidden costs that you might not have considered.

Is Writing a Check Still Safe?
Is Writing a Check Still Safe?

Every time you pay by check, you hand your bank account numbers to a stranger.

8 Things You Should Replace to Improve Your Life Today
8 Things You Should Replace to Improve Your Life Today

Being frugal isn’t smart if you put off replacing these items.

7 Kirkland Signature Items to Avoid at Costco
7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

9 Things You Should Never Leave in a Car
9 Things You Should Never Leave in a Car

Thinking of leaving these possessions in a car? Prepare for unexpected consequences.

9 Mistakes People Make When Cleaning With Vinegar
9 Mistakes People Make When Cleaning With Vinegar

Cleaning with vinegar can save you a lot of money, but using it like this can cost you.

13 Amazon Purchases We Are Loving Right Now
13 Amazon Purchases We Are Loving Right Now

These practical products make everyday life a little easier.

10 Deep Discounts Available on Amazon This Friday
10 Deep Discounts Available on Amazon This Friday

These items are all steeply discounted — but the deals won’t last long.

7 Income Tax Breaks That Retirees Often Overlook
7 Income Tax Breaks That Retirees Often Overlook

Did you realize all these tax credits and deductions exist — or that they apply to retirees?

7 Hidden Sections of Amazon Every Shopper Should Know
7 Hidden Sections of Amazon Every Shopper Should Know

These little-known departments of Amazon are gold mines for deal-seekers and impulse shoppers alike.

10 Cars You Are Most Likely to Keep for 15 Years
10 Cars You Are Most Likely to Keep for 15 Years

The cars that owners hold onto the longest have one thing in common, a new study shows.

10 Things Successful Retirees Do Differently
10 Things Successful Retirees Do Differently

These habits and characteristics can help put you on the track to success.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.