How Low Will Gas Eventually Go?

Drivers across the US have been getting some relief lately in the form of lower fuel costs. Gas prices have retreated considerably since peaking above $4 per gallon last summer with the average price now just below $3 per gallon. In some areas of the country, particularly in the midwest, gas prices have dropped below $2.50 per gallon bringing even greater savings for drivers.

While prices have dropped considerably, many consumers are wondering just how low they will go before hitting bottom. In addition, drivers understand that come next Spring, when the summer driving season begins, prices will begin to head back up, perhaps as high as they were last summer.

Higher Than Last Year

Indeed, last Friday’s average national price of $2.99 a gallon was still 28 cents higher than the price one year earlier which was also declining from that summer’s high price according to GasBuddy.com which tracks that information.

Drivers in North Carolina have noticed some of the biggest drops over the past week with gas prices falling at least fifty cents from an average of $3.79 per gallon. The Tarheel State’s prices stayed artificially high as a shortage of supplies due to Hurricane Ike impacted the region. A pipeline from Texas to the southeast that had been shutdown was restored, quickly upping supply while driving down prices.

Prices Drop Appreciably In Hawaii and Alaska

Even prices in Hawai’i and Alaska have retreated sharply from their summer highs when the average price of regular gasoline topped five dollars per gallon while diesel prices topped six dollars per gallon in some places. Today, diesel fuel is still priced above premium gasoline, anywhere from 30 to 60 cents higher than regular gasoline.

OPEC to Cut Supplies?

The big drop in oil prices has caused OPEC to convene an emergency meeting where the oil producing nations are expected to cut production in a bid to stabilize prices. Should that occur, look for prices to level off for the winter before begging to climb again next spring.