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Monday, March 18, 2024
March 18, 2024

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AAA: Gas headed for $2 a gallon this year

Fall in crude oil prices likely to lower pump price, motoring club says

The Columbian
Published:

The slide in oil prices over the last month will probably bring $2 gasoline back to filling stations across the United States later this year, AAA said Friday.

U.S. crude prices have fallen 20 percent over the past month amid a glut of shale oil. Pump prices are already at the lowest seasonal level since 2009, averaging $2.66 a gallon, and they’re in store for another “dramatic” decline in September when refineries switch to making a cheaper winter gasoline blend, the nation’s biggest motoring club said in an emailed statement.

The average U.S. gasoline price last fell below $2 a gallon in 2009. The country was less than 4 cents shy of slipping under the threshold in January before an oil rally and a spate of refinery outages cut the decline short. A handful of filling stations in the U.S. are already selling gasoline for less than $2, and the southeastern and central U.S. will probably be home to the most places with $2 gasoline by winter, AAA said.

“The recent price declines are hopefully just a precursor of much bigger savings to come at the pump,” Michael Green, an AAA spokesman in Washington, said by email. “We could see many parts of the country make another run towards $2 per gallon by the end of the year if everything keeps running smoothly.”

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