US: AAA predicts fuel savings of $75 billion from lower price image

According to the AAA, the continued decline of gasoline prices into 2015 could yield savings for US drivers that reach as much as $75 billion.

Heathrow, Florida-based AAA, the country’s largest motoring group, said in a statement that in 2014 the swift decline in recent months of the price of gasoline has already turned savings of $14 billion for the Americans. The motor fuel’s pump prices have plummeted a record 97 consecutive days to a US national average of just $2.26 a gallon on December 31, 2014 – the best price since May 12, 2009. The continued decline has been triggered by the global glut of crude oil and the fact that US producers are now successfully competing with the Organization of Petroleum Exporting Countries over US market share – in a huge boon for consumers across the country. US production last year was the best in three decades thanks to a surge in production from shale deposits. “Next year promises to provide much bigger savings to consumers as long as crude oil remains relatively cheap,” comments Avery Ash, an AAA representative.

On the other hand, the record lows for the global price of crude oil bring “significant uncertainty” over the cost this year, as the lower prices might force numerous companies to lower production and instability could be triggered in oil-producing countries, according to the motoring group.

Via Bloomberg