For the first time since April 2007, the national average price for a gallon of regular unleaded gasoline has fallen below the $2.60 mark. And from the looks of things, it appears as if there’s still plenty of room for prices to fall.
As of this afternoon, the national average gas price stood at $2.57 per gallon. Over the past month, the price of gas has fallen nearly 30%, and is now down nearly 40% from the record high prices set back in July.
Gas prices are falling so quickly that they’ve lost nearly 10% over the past week, and have fallen so far that they are actually 8% below where they were at the same point last year.
There are now only two states with an average gas price above $3 per gallon; Alaska at $3.51 and Hawaii at $3.46. Even California – which typically has the highest gas prices in the continental U.S. – has an average price below $3 per gallon.
There are now 22 states reporting an average price below $2.50 per gallon, with Oklahoma reporting the lowest average price at $2.12 per gallon.
If gas prices were to continue to fall at this rapid pace and end up hitting the $2 mark, it would be the first time since February 2005 prices had made it that low. While I certainly don’t believe that’s likely – prices would have to fall another 22% from current levels – at this point it can’t be ruled out entirely. After all, how many of us expected gas prices to fall even this far?
I guess those predictions of $5 gas and $200 oil by the end of 2008 were a bit off base.
{ 4 comments… read them below or add one }
If OPEC were to cut production by 5%, the “low” price would double within weeks. Don’t hold your breath.
That’s the thing with predictions about gas prices a year or even six months out, they are almost all wrong. But I have to say that I agree with Paul’s comment. Chances are that this situation won’t last.
they might lower their price but it wont last long, gas really hurts our budgets, but there are some alternative ways on how to reduce car fuel consumptions, we now have hydro powered cars, not only it reduces fuel consumptions also helps our nature, you can convert your car into gas powered ones, there are sites out there that offers services like that.
wow gas is 1.84 i can’t believe it