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HomeNewsAAA reports U.S. Gas Prices Reach Six Year Lows

AAA reports U.S. Gas Prices Reach Six Year Lows

AAATampa, FL – Earlier this week, average prices in Florida, Georgia, and Tennessee slipped under this year’s lows, becoming the lowest state averages since 2009. Today, the national average followed suit.

The lowest average prices of the year were $2.033 (U.S.) on 1/26, $2.072 (FL) on 1/31, $1.987 (GA) on 1/28, and $1.881 (TN) on 1/26. Prices are now the cheapest since March 26th, 2009 (FL), May 6th, 2009 (GA), and March 25th, 2009 (TN).

Gas Prices

“Motorists are now saving an average of $18.00 for a full tank compared to two years ago when gas prices were above $3.00,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “These savings couldn’t come at a better time, as Americans look to allocate money for holiday shopping and travel.”

Pump prices slipped just enough to set a new benchmark, but then came to a screeching halt last week. The national average price for a gallon of regular unleaded ($2.037) is half a cent lower than the average price last week ($2.043). Prices in the southeastern U.S. fell 1-cent in Florida and Georgia, and 3 cents in Tennessee.

“After 25 consecutive days of declines, the pump price plunge briefly stopped, then slowly slipped again,” said Jenkins. “This was mainly the result of oil prices inching up a couple of dollars two weeks ago. Fortunately, oil prices fell again last week, which should allow gas prices to creep lower too.”

Last week, crude oil reached some of the lowest prices in four months. Daily settlements of WTI fell below $40.00 a barrel, which hasn’t happened since August. The weekly average for a barrel of oil was $40.90 – the lowest weekly average in two weeks.

A global oversupply of oil has kept a stranglehold on crude prices. According to the EIA, crude oil inventories remain near levels not seen for this time of year in at least the last 80 years. The price of WTI oil is is about $5.00 lower than what they were when gas prices hit their lowest point in January. Oil reached this year’s high of $61.43 on June 10th. The price of crude has remained below $50 since July, helping to keep gasoline production costs low.

Motorists can find gasoline below $2.00 a gallon at 46% of gas stations in Florida, 83% of gas stations in Georgia, and 93% of gas stations in Tennessee. These percentages should get higher as we approach the year-end holidays.

Gas prices during the month of December typically decline. Pump prices for the month of December 2014 averaged $2.51 (U.S.), $2.57 (FL), $2.47 (GA), and $2.34 (TN). During the same month, average prices plunged a total of 51 cents (U.S.), 41 cents (FL), 45 cents (GA), 46 cents (TN).

These were massive declines largely due to the price of oil falling $17.00 during that same period. It is unlikely we will see pump prices dip that dramatically in December 2015.

Since the year 2000, prices saw an average decline of 5 cents (U.S.), 4 cents (FL), 3 cents (GA), 4 cents (TN), during the month of December. That is a more likely scenario this year, as pump prices have largely adjusted to the lower price of crude.

Current and Past Price Averages

Regular Unleaded Gasoline

Sunday Saturday Week Ago Month Ago Year Ago
National $2.037 $2.042 $2.043 $2.222 $2.692
Florida $2.061 $2.064 $2.067 $2.138 $2.714
Georgia $1.973 $1.978 $1.981 $2.116 $2.617
Tennessee $1.843 $1.848 $1.870 $2.013 $2.503
Click here to view current gasoline price averages

 

AAA updates fuel price averages daily at http://www.fuelgaugereport.aaa.com/. Every day up to 120,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.

About The Auto Club Group

The Auto Club Group (ACG) is the second largest AAA club in North America.  ACG and its affiliates provide membership, travel, insurance and financial services offerings to over 9 million members across eleven states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana.

ACG belongs to the national AAA federation with more than 55 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety.

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