Gasoline prices are now less than $2 a gallon across 28 states in the US.
The national average price for regular-grade gasoline is now $2.05 a gallon, $0.08 less than last week, and $1.24 less than the average price per gallon in January 2014, according to the AAA and gasbuddy.com.
Ever since the global slump in crude prices (down 60% since mid-2014) gas prices have taken a nosedive. Crude oil prices have suffered because of overproduction and a lack of demand.
Benchmark West Texas Intermediate crude dropped to $47.52 a barrel on Monday, while Brent crude fell to $48.87 a barrel – following news that Iraq’s daily oil output is at a record high.
In addition, Bijan Zanganeh, the Iranian Oil Minister, announced that Iran has no plans to reduce oil production. J.P. Morgan made a forecast that Brent crude is going to average $49 a barrel this year.
Despite growing concerns in the oil industry, American consumers will continue to benefit from the slump.
According to USA Today, Tom Kloza, senior analyst for the Oil Price Information Service, predicts average gas prices to be at $2.45 for the year.
Below is a list of the current average prices of gas per gallon across various states:
- Oklahoma: $1.76
- Kansas: $1.79
- Texas: $1.83
- New Mexico: $1.85
- Colorado, Idaho and South Carolina: $1.87
- Louisiana: $1.88
- Mississippi: $1.89
- Tennessee: $1.90
- Arkansas, Michigan: $1.91
- Arizona, South Dakota, Alabama: $1.92
- Iowa: $1.93
- Nebraska, Utah: $1.94
- Wisconsin: $1.85
- Minnesota, Indiana, New Jersey: $1.97
- Virginia, Ohio, North Dakota, Wyoming: Georgia: $1.99
N.B. A US gallon is not the same as a British (Imperial) gallon. One US gallon = 0.83 of a British gallon.