The average paid across the U.S. for a gallon of regular gas fell to $2.05 on Friday.
In comparison, at this time last year, drivers were paying an average price of $2.67 for a gallon of regular gas.
The highest national average price on record for a gallon of regular unleaded is $4.11, a peak reached on July 17, 2008.
Why gas prices are falling
AAA, a nonprofit federation of motor clubs, expects gas prices to continue to drop, with the national average price reaching $2 soon.
One obvious reason for the trend is that there are fewer vehicles on the road in response to the coronavirus pandemic. AAA explains:
“New data from the Energy Information Administration reveals that with many Americans staying at home and practicing social distancing, gas demand dropped dramatically … last week.”
Also contributing to falling prices is a crude-oil price war between Russia and Saudi Arabia.
Half of states have prices under $2
On Thursday, AAA’s state-by-state data revealed that the average gas price was already less than $2 per gallon in 24 states. By Friday, that was the case in 25 states.
The 10 states with the lowest average prices for regular gas as of Friday were:
- South Carolina: $1.798 per gallon
- Missouri: $1.795
- Texas: $1.785
- Mississippi: $1.770
- Indiana: $1.763
- Michigan: $1.755
- Kentucky: $1.736
- Ohio: $1.698
- Wisconsin: $1.668
- Oklahoma: $1.628
If you’d prefer even lower prices, check out “7 Smart Ways to Save Money at the Gas Pump.”
What’s your take on this news? Sound off by commenting below or on the Money Talks News Facebook page.