Will We See $1.99 Gas By The New Year?

Gas Prices Update

Gas Prices
Gas prices fell below $2 a gallon at various filling stations in Georgia and Tennessee last week, and prices in Florida are not far behind. The lowest prices in Florida are in the Jacksonville area at about $2.10 a gallon. If prices keep falling at a rate of 2 cents a day, Florida motorists could begin finding gasoline below $2 by the end of the week.

“Gasoline prices are plunging with little sign of slowing down,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “Oil prices dropped for the fourth consecutive week because of increased oil production and low demand, and that’s keeping downward pressure on the price of gasoline. It is unclear exactly how low prices will go, but gasoline will keep getting cheaper as long as oil does.”

When 89.5 million Americans hit the holiday road, they will find the cheapest gasoline since May 2009, and the lowest Christmas day prices since 2008. On average, Americans are saving $13 for a tank of gas compared to this time last year. If prices remain at these levels, households will save $550 next year, according to the Energy Information Administration.

“Plunging pump prices have boosted disposable income by more than 3.5 percent, which encourages Americans to travel” Jenkins continued. “AAA expects the highest number of travelers during the year-end holidays on record, which dates back to 2001.”

Source: AAA Media