Gas prices are dropping, have been dropping, and are going to continue doing so for at least a few more months. As the longest streak of gas price decline since January keeps going on, there is much more to come. A number of states could end up paying less than an average of $2 a gallon by the time winter rolls around.
AAA reported that gas prices have declined for just about two weeks straight, and as of July 29, the current average for a gallon of regular gas is $2.686. That’s down from Tuesday’s average of $2.697, and the price looks like it is just going to keep going down.
The decline over the 14-day period is a total decrease of nine cents a gallon. Michael Green, a spokesman for AAA, states that after Labor Day and the summer are gone, it’s going to drop even more dramatically.
“We could see average gas prices drop another 20 cents over the next few weeks as long as oil remains stable. More dramatic drops may come after Labor Day once the busy summer driving season is over and people are buying less gasoline.”
While some states may not get as low as others, the central United States and Southeast could see a tremendous drop in gas prices. By December, Green believes that they may not only hit $2 per gallon, but drop below it as well.
The same thing happened last December as the price of barrels of oil just kept dropping.
Currently, West Texas Intermediate crude has fallen to around $49 a barrel. It had hit a high in June of more than $61 a barrel, and is now down 20 percent. As Home Town Stations reported, it dropped nearly $10 in July alone.
Tom Kloza, global head of energy analysis at the Oil Price Information Service, is also of the belief that gas prices could fall under $2 by the winter. Once summer is over and people aren’t traveling as often and buying as much gasoline, demand price will drop.
“Forward thinkers in the trading community are betting on a steady slide in spot prices. If their bets are accurate, dozens of U.S. states could see winter gasoline prices that match some of the $1.80-$2.20 a gallon pump prices seen last December, January, and February.”
Kloza actually said that the biggest changes could come after Sept. 15 when many states can switch away from the “more environmentally friendly summer-grade gasoline.” That is when it will be possible to see “thousands of stations” in “dozens of states” with gas prices less than $2 per gallon.
Unfortunately, California won’t be as lucky. It won’t be until early November that those on the West coast see a change, and even then, they’ll have to come down from average prices of $3.81 per gallon of regular gasoline — the highest in the country.
Gas prices dropping this winter means that there could be more money for the holidays, and that always makes people happy. Less demand brings about lower prices, and the fall and winter of 2015 will see gas prices at some of the lowest in months.
[Images via Getty Images – Joe Raedle/AAA]