Average gas price in Virginia below $2 a gallon

It’s official! AAA, the trusted source for nationwide gas prices, announced the Virginia gas price average fell below $2 per gallon to $1.99 per gallon statewide, the lowest price of gasoline in the Commonwealth since May 2009.

Virginia celebrates sub $2 per gallon gasoline with 24 other states and three states, Georgia, Montana and North Dakota, could soon be joining the low gas price party.

“Two dollar gasoline seemed to be a thing of the past and sub $2 even more so, yet Virginia history has  repeated itself by dropping to $1.99 per gallon,”said Tammy Arnette, Public Affairs Specialist for AAA Mid-Atlantic.  “Compared to last year, drivers are saving anywhere from $15-$40 per fill-up, depending upon the size of their vehicle’s gas tank,” added Arnette.

Lower gas prices are also fueling conversations on social media.  Drivers in the Commonwealth are posting their excitement on Facebook and Twitter as they proudly display the price they paid at the pump.  “WIN WIN WIN full tank of gas for $28.75,” posted by Pamela Dickson Adams of Dinwiddie, Virginia via Facebook in her excitement this week as she filled her thirsty tank.  AAA joined the celebration by calling on Virginia motorists to tweet their thoughts about the sub two dollar gas @AAAVANEWS,  #GAS.

Virginia motorists are paying an average price at the pump today ($1.99 per gallon) that is more than forty percent lower than the peak experienced in April last year at $3.52 per gallon.. Today’s price is six cents less than one week ago, 35 cents less than one month ago and $1.20 less than one year ago. Barring any major increases in the global price of crude oil, AAA expects the average price for gasoline to remain below $3.00 per gallon in 2015.

The dramatic slide in retail gas prices has been driven by a similar plummet in global crude oil prices since the end of the summer. This decline in the price of oil has been a product of weak demand combined with abundant supply.

While lower gas prices are certainly a welcome relief for consumers, the broad impact of sustained low oil prices are front of mind for many industry stakeholders. In countries like the United States where the cost of oil extraction is more expensive, producers may be forced to reassess their plans to factor in profit margins that are sharply lower or even reversed as markets continue to register multi-year lows.

Additionally, countries that rely heavily on oil revenues to fund government services may find themselves in situations where reductions to social programs are necessary, which could lead to civil unrest. Either of these dynamics has the potential to put upward pressure on prices.

The global price of crude has lost more than half its value since mid-2014. OPEC has reiterated that it will not intervene in the market to force prices higher and plans to sustain its current production levels, with the earliest possibility for supply reductions reportedly pushed to their next meeting scheduled for June.

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)