The national average price for regular unleaded gasoline has fallen for 16 consecutive days, reaching today’s price of $2.21 per gallon. Today’s average is the lowest since February 2015, and represents a savings of 59 cents per gallon compared to the 2015 peak price of $2.80 (June 15).
“Gas prices keep falling because oil prices are low and gasoline supply continues to outpace demand,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “Barring any unanticipated disruptions in supply, or spikes in the price of crude oil, the national average could fall below the $2 per gallon threshold for the first time since 2009 before the end of year.”
Nationwide, 21 percent of gas stations are selling gasoline below $2 a gallon. Drivers are saving 5 cents per gallon week-over-week and 8 cents per gallon month-over-month. Significant yearly savings persist, and the national average is discounted by 85 cents per gallon from this same date last year.
The price of oil sunk even lower last week signaling more discounts at the pump. West Texas Intermediate averaged $45.32 a barrel last week – $1.32 lower than the week before. Oil settled as high as $45.89 last Monday, then finished the week at $44.60. The price of oil is responsible for about two-thirds the cost of a gallon of gasoline. For every $1 change in the price of a barrel, gas prices shift about 2.4 cents per gallon. Still, gas prices have plenty of room to fall before catching up with these low oil prices. Last week’s average price was the lowest for this time of year since 2003. During that time, the national average price for a gallon of gasoline was $1.58. It is unlikely that gasoline will return to levels that low, but $2 or slightly below is not out of the question.
The current average price in Florida of $2.12 is 6 cents lower than last week, and 93 cents lower than this time last year. In Georgia, the average price is $2.06, 6 cents cheaper than last week and 89 cents cheaper than this time last year. The average price in Tennessee is $1.95, 5 cents lower than last week, 86 cents lower than last year.
US average of $2.20 is the lowest on October 25 since 2006 (2.199) – the next lowest was on October 25, 2004 which was $2.017.