TAMPA, Fla. (January 25, 2015) – The average price for gasoline in Georgia fell below $2 a gallon last week for the first time since May 2009. Georgia became the 29th state to slip below the $2 threshold on Friday. Florida’s average price was 8 cents above $2 on Sunday, but should drop below $2 within the next month.
“The gas price plunge is directly connected to declining global crude oil prices,” said Mark Jenkins, AAA – The Auto Club Group. “Like pump prices, crude oil prices have posted multi-year lows due to global supply outpacing demand, which has kept downward pressure on the price of crude and ultimately meant hefty discounts in retail gasoline for U.S. drivers. The price of oil dipped again last week, meaning motorists could see even more discounts at the pump in the coming days.”
Crude oil has fallen more than $62 since the Summer 2014. On Friday, the price of WTI settled at $45.59 a barrel on the NYMEX, $3.10 cheaper than the week before.
“Gas prices will keep falling until the price of oil bottoms out,” said Jenkins. “It’s unclear when that will happen, but oil prices should remain relatively low through the first half of the year. AAA expects the national average for gasoline to remain below $3 per gallon in 2015, barring any major fluctuations in the global price of crude. While increased seasonal demand and maintenance at refineries may result in a typical 30-50 cent increase in pump prices this spring, a major global price recovery is unlikely to be on the horizon, unless there are major market disruptions or geopolitical events.”
U.S. motorists are paying the lowest average gas prices since March 2009, and the national average is likely to slide below $2 per gallon before the end of the month. The average price at the pump has dropped a record 122 consecutive days, for a total a savings of $1.30 per gallon during this stretch. The national average price for regular unleaded gasoline is $2.04 per gallon. Sunday’s price was 3 cents less than one week ago, 29 cents less than one month ago and $1.25 less than one year ago.
CURRENT AND PAST PRICE AVERAGES
Regular Unleaded Gasoline
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