The psychological tipping point of filling up the car with sub $2 a gallon gasoline is now a reality in 28 states in America, while the national average is not very far off – at $2.05.
According to gasbuddy.com and the AAA, the national average for regular-grade gasoline this week has dipped towards $2.05 a gallon, falling further from $2.13 during the previous week, $2.45 in mid-December and $3.29 in January last year. Michigan, the state that houses the motoring capital of America – Detroit – is the 12th lowest, averaging only $1.91 – around $1.36 less than in 2014. The national gas prices – expected to dip below the $2 a gallon average during the next weeks has followed the worldwide trend of the dipping crude oil price – triggered by slower demand and growing production. Interestingly, while the OPEC (Organization of Petroleum Exporters Countries) has not shown signs of capping production, the prolonged slump in global crude prices, falling 60% since mid-2014 seems to be mostly affecting Russia and could also be move to drive out the competition from the US. America is today one of the largest producers in the world, after the country used unconventional drilling procedures to tap previously unknown resources.
Analysts now forecast that if gas prices average $2.45 for the year, the US national gasoline bill would fall by $120 billion from 2014’s $460.5 billion. The cheapest places where you can find gasoline in the US this week are Kansas City, Missouri at $1.67 a gallon – with the state also topping the nation’s lowest average price, at $1.76.