Gas Prices Slip Below $2, but Will the Trend Continue?

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The average national gas price fell below $2 per gallon today for the first time in nearly seven years.

The American Automobile Association reports that the last time the national average was $1.99 was on March 25, 2009.

Compared with one year ago, the national average is down by about 41 cents.

More than two-thirds of U.S. gas stations now are selling gas for less than $2 per gallon, and at least one station in 47 states is selling gas for less than that.

The states with the cheapest averages are:

  • Missouri ($1.77)
  • Oklahoma ($1.78)
  • South Carolina ($1.78)
  • Tennessee ($1.79)
  • Kansas ($1.79)

AAA attributes the low prices to the world having “more than enough” oil and gas supplies to meet the current demand, and to a seasonal price dip through early winter that is associated with less driving and less fuel use this time of year.

Additionally, Marshall Doney, AAA president and chief executive, says:

“The best news of all is that there is room for prices to drop even more in the coming weeks.”

AAA reports that prices will likely remain low through January thanks to seasonal trends, and could fall further if the cost of crude oil remains weak.

Prices could increase by 50 cents per gallon by late winter, however, as more refineries conduct maintenance ahead of the busy summer driving season, which reduces fuel production.

For 2016 as a whole, though, AAA predicts relatively low prices:

Despite the expected seasonal increase, the national average price of gas may not rise above $3 per gallon in 2016 because oil should remain abundant and relatively inexpensive.

CBS News reports that in the Dallas/Fort Worth area and California’s Silicon Valley, some drivers are saving money on gas by using an on-demand gas delivery service

The company behind the service, called Booster Fuels, operates trucks that bring gas to customers’ vehicles and fuel them up while customers are at work, usually for 5 cents less per gallon than local gas stations charge.

Have lower gas costs changed your spending habits this year? Let us know how below or on Facebook.

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