Gas Prices Continue to Drop, Not Likely to Jump Back Soon

In many parts of the country, the price of gasoline has dropped to below two dollars. Gas prices, overall, are down more than a dollar from this time last year and, despite holiday predictions, continued to get lower.

As reported in the Inquisitr, gas prices fell below $2/gallon in Virginia just before Christmas. That trend has continued, according to Gas Tracker and GasBuddy.com, both popular gasoline price tracking services.

The most dramatic drops in gas prices began appearing in June, says the Washington Post, with prices dipping over a dollar in 47 states since then. The Post cites AAA, which has shown prices dropping the most in Ohio, where it dropped by nearly two dollars in that period. Several things contributed to the falling prices at the pump, with gas prices falling in areas like the Midwest where refineries had been in a crunch, restricting supplies, until about the time the fall began. So far, Missouri has the lowest prices in the country as a state average, AAA says.

The Detroit Free Press reports that prices may be nearing their low point and may not drop any further for the time being. Quoting Patrick DeHaan of GasBuddy, the Free Press says that the gas prices drop is likely in the “final two minutes of play” as they outpace the drop in oil prices. Although DeHaan expects that prices will remain very low through the winter, spring has traditionally been when gas prices have risen to meet more demand and higher-cost blends. That raise, says DeHaan, may not be huge in comparison to the drops seen over the past six months. He predicts gas staying under $3 a gallon through 2015.

“The slump in crude oil has wavered slightly and we’re in the fourth quarter of the game.”

Meanwhile, AAA is predicting that economic boons will come to the automotive industry, the travel industry, and more as low gas prices spur sales and travel. They estimate that Americans are saving about $450 million or more per day on gasoline compared to gas highs earlier in 2014.

gas-prices-signGasBuddy says the largest price drops have been recorded in Michigan (down $1.85/gallon), Kentucky (-$1.66/g), Indiana (-$1.62/g), Ohio (-$1.61/g), and Illinois (-$1.60/g). The least amount of gas price drops were recorded in Hawaii and Alaska.

The good news for those concerned about pollution? The U.S. Energy Information Administration (EIA) says that lower gas prices doesn’t always mean more driving or demand for gasoline. According to a report on Torque News, the EIA shows how gasoline costs have risen and dropped in recent years while travel amounts and fuel use has remained relatively steady.