US: drivers rejoice as gasoline averages hits six-year low image

US motorists have reasons to welcome the start of the New Year – the average price of gasoline, according to Lundberg Survey Inc., has dropped to the lowest level – for the period – since 2009, averaging $2.2021 a gallon for regular gasoline last week.

For the three-week period to January 9 the prices plunged another 26.92 cents and sit at $1.14 below the level seen at the start of 2014 according to the survey, which gathers data from around 2,500 filling stations, said the Camarillo, California-based company. OPEC members – in a move that is both designed to hit US and Russian drillers – has announced it won’t cap production to artificially increase prices that have succumbed more than 50% since June – with crude oil prices dropping under $50 for the first time since 2009. US deposits of gasoline were the biggest since 2011 at 237 million barrels, according to government information and the nation’s refineries operated near full capacity, at around 94 percent.

Trilby Lundberg, the president of Lundberg Survey, commented that the US has “swollen supplies and refinery utilization rates are very high,” with the prime mover for gasoline prices being the crumbling crude oil price. He added that gasoline prices at the end customer are the lowest since April 2009, when the average was $2.0549 a gallon – and also incredibly lower than the five-year January average of $3.17 a gallon.

The best price for gasoline in the stations surveyed across the contiguous 48 states was found in Albuquerque, New Mexico, where buyers could have a gallon of gasoline in average for $1.76. The highest price was seen in San Francisco at $2.66 a gallon, while Long Island, New York averaged $2.54 a gallon and Los Angeles commended $2.59.

Via Bloomberg