AAA: Gas prices dip below $3 a gallon in Richmond area

Gas prices have been on the downward trend across the country since the end of June.  For the first time, since February 17, 2011, gas prices are averaging $2.98 per gallon in the City of Richmond; a savings of 11 cents compared to last year.

“Gas prices have been a thorn in the side of Richmond motorists since it peaked at $4.01 per gallon in July 2011,” said Tammy Arnette, Public Affairs Specialist for AAA Mid-Atlantic.  “This is undoubtedly great news as Richmond has not seen gas prices average under $3 per gallon in over three years,” said Arnette.

Why the decline in gas prices?  Hurricane season lost its roar this year with an uneventful show allowing production facilities the opportunity to operate without interruptions and generate sufficient supplies.  Demand is down since the end of the summer driving season and crude oil has been trading at under $100 per barrel since the end of July.

Analysts believe gas prices will continue to decline throughout the end of the year now that stations have switched to the more affordable winter blend of gasoline and barring any disruption to supply.

The national average price for a gallon of gasoline is $3.27 per gallon and Richmond, Virginia, which is, as usual, averaging 20-30 cents less than the national average.

AAA expects the national average price at the pump to continue to drop 10-20 cents before the end of the year which will likely push Richmond even lower than today’s celebrated $2.98 per gallon gas.