Is sub-$2 a gallon gas possible soon?

AAA LogoVirginia gas prices have fallen over a dollar ($1.01) since the April 2014 spring peak ($3.52 per gallon) and as we approach the end of the year, some areas of Virginia could be flirting with sub $2 per gallon gasoline.

Gas prices in the Commonwealth have dropped about 20 cents per month on average, bringing them to the lowest levels in four years, according to AAA Mid-Atlantic.  The retail average in the Commonwealth is $2.51 per gallon, 10 cents less than last week, 22 cents less than last month and 69 cents less than last year.

“Lower gas prices are padding the pockets of motorists as we head into the holiday season,” said Tammy Arnette, Public Affairs Specialist for AAA Mid-Atlantic. “Motorists are saving on average $15-$35 per fill-up compared to the spring peak experienced in April.  As gas prices continue to fall, some areas of the Commonwealth could see gas stations drop under $2 per gallon,” added Arnette.

 

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline

 

Today Last Week April 2014 “Spring Peak”
National $2.66 $2.76 $3.70
Virginia $2.51 $2.61 $3.52
Charlottesville $2.52 $2.63 $3.49
Norfolk Area $2.54 $2.64 $3.57
Richmond $2.45 $2.54 $3.48
Roanoke $2.49 $2.62 $3.44

 

The average price for retail gasoline historically declines from fall into winter due to a number of factors including decreased demand. Consumers can expect to see the price at the pump tick lower as we approach the New Year, however, crude oil would have to fall by another $25 to $30 per barrel to cause the national average to drop below the $2.00 per gallon threshold this winter, which remains unlikely.

Yearly comparisons continue to reflect the most extreme drops in the price at the pump. Not only is the average price down in every state and Washington, D.C. since last year, but consumers in 46 states and the District of Columbia are saving more than a quarter per gallon, and 35 states and D.C. are saving 50 cents or more per gallon.