AAA says Santa could bring $2.00 Gas Prices for Christmas

Oil prices dip below $40.00 a barrel for the first time since 2009

Tampa, FL – Plunging oil prices continue to place downward pressure on prices at the pump. Nationally, gas prices have fallen 7 cents from a week ago, and 14 cents from a month ago. Should oil prices remain at or below their current rate, the national average could dip below $2.00 per gallon by the end of the year.

In the southeastern U.S. the price at the pump has fallen 4 cents in the past week, and more than 20 cents in the past month.

“We may see a little volatility in gas prices as refineries conduct seasonal maintenance,” said Josh Carrasco, spokesman, AAA – The Auto Club Group. ” After Labor Day we normally see a drop in gasoline demand as we head out of the busy summer driving season. A decline in demand, refineries switching to winter-blend fuels and falling oil prices should cause a continued drop in price of gas. If there are no major supply disruptions, we could see some stations in the southeast selling $2.00 a gallon gas this fall.”

On Friday, the price of West Texas Intermediate (WTI) oil briefly dipped below $40.00 a barrel before closing at $40.45 – the lowest daily closing price since March 2009. The price of oil averaged $45.72 the week gas prices hit their 2015 low from January 26th-31st. During that week, the lowest average gas price was $2.07 in Florida, $1.99 in Georgia, and $1.88 in Tennessee.

“We may see a little volatility in gas prices as refineries conduct seasonal maintenance,” said Josh Carrasco, spokesman, AAA – The Auto Club Group. ” After Labor Day we normally see a drop in gasoline demand as we head out of the busy summer driving season. A decline in demand, refineries switching to winter-blend fuels and falling oil prices should cause a continued drop in price of gas. If there are no major supply disruptions, we could see some stations in the southeast selling $2.00 a gallon gas this fall.”

[320left]On Friday, the price of West Texas Intermediate (WTI) oil briefly dipped below $40.00 a barrel before closing at $40.45 – the lowest daily closing price since March 2009. The price of oil averaged $45.72 the week gas prices hit their 2015 low from January 26th-31st.

During that week, the lowest average gas price was $2.07 in Florida, $1.99 in Georgia, and $1.88 in Tennessee.

State Breakdown

Florida: The current average price of $2.38 is the lowest since February 24th; 4 cents lower than a week ago, 22 cents less than a month ago, and 96 cents cheaper than a year ago. Gas prices have fallen 64 of the last 66 days.

Georgia: The current average price of $2.39 is the lowest since April 24th; 4 cents lower than a week ago, 20 cents less than a month ago, and 94 cents cheaper than a year ago. Gas prices have fallen 44 of the last 46 days.

Tennessee: The current average price of $2.26 is the lowest since April 21st; 4 cents lower than a week ago, 19 cents less than a month ago, and 95 cents cheaper than a year ago. Gas prices have fallen 64 of the last 67 days.

Current and Past Price Averages

Regular Unleaded Gasoline

 

[320right]AAA updates fuel price averages daily at www.fuelgaugereport.aaa.com

Every day up to 120,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.

About The Auto Club Group

The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, travel, insurance and financial services offerings to approximately 9 million members across eleven states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana.

ACG belongs to the national AAA federation with more than 55 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety.