U.S. gas prices are about 81 cents less than we paid a year ago. In just the past two weeks, the average price per gallon of gas has dropped by 11 cents. And analysts say the price at the pump is expected to continue its downward trend in the coming months, dipping below $2 per gallon in some parts of the country.
“There will be thousands, even tens of thousands of stations below $2 by the time we’re into football season,” Tom Kloza, chief oil analyst for the Oil Price Information Service, which tracks retail prices for AAA, told CNN Money.
The gas price dip follows a slump in crude oil prices, Reuters reports.
“This is a continuation of dynamics that have been building in the past several weeks, as both U.S. and global benchmarks are down steeply again,” said Lundberg survey publisher Trilby Lundberg in Camarillo, California.
The survey revealed that at $3.80 per gallon, the price at the pump in Los Angeles was the highest in the contiguous United States. Charleston, South Carolina, had the lowest price at $2.19 per gallon.
After mid-September, price drops in gasoline could be even more pronounced as gas stations are no longer required to sell the more expensive summer blend of gas, Kloza predicted.
“Oil is being pushed lower by concerns about a slowdown in Chinese economic growth, strong output from North America and the Middle East, as well as the tentative nuclear deal with Iran, which could bring more of that country’s oil to the market,” CNN Money said.
Gas is about $2.74 per gallon in my town.
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