Gas under $2 gallon
Plunge is saving average American household $750 over last year
NEW YORK – At some point this will end. The price of gasoline will not fall to zero.
But for the first time since 2009, most Americans are paying less than $2 a gallon. Just three months ago, experts were shocked when it fell under $3.
“It’s crazy,” said Michael Noel, an economics professor at Texas Tech University who studies gasoline prices. “But for consumers it’s very, very good.”
Consumers and the economies of the U.S. are basking in the lowest prices for crude oil and gasoline in six years. U.S. crude oil traded Friday just below $46 a barrel and the average price for a gallon of gas was $2.04.
While there are some losers, such as oil companies, oil-producing states and oil-exporting countries that benefited from $100 a barrel for four straight years, most economists agree the good outweighs the bad.
The drop in prices is acting like an immediate tax cut for drivers, leaving them more money to spend on other things. The Energy Department predicts lower prices this year will save a typical household $750 compared with last year.
Julia Conner paid $1.98 a gallon Thursday near her home in Wesley Chapel, North Carolina. Saving on gas has made her more willing to go out for lunch with co-workers, or out for dinner with her husband.
Pump prices have declined for a record 120 straight days, according to AAA, though the size of the declines is shrinking. But even if the price rises this spring, driving during summer should still cost less than it has in years.
Conner is hoping she can afford a 300-mile round trip to Asheville, North Carolina, this summer. “Even if it’s not $1.98 that would definitely help as far as vacation goes,” she said.