The national average cost for a gallon of gasoline dropped to an 18-month low on Tuesday, as gas prices continue to plunge due to an increase in energy supplies and a drop in demand, with experts expecting the cost of a gallon of gas to fall below $3 by the end of the year.
The price of gas fell to its lowest point in 18 months.
According to GasBuddy, the average price for a gallon of gasoline fell to $3.09 on Tuesday, but the price is still 55 cents higher than a month ago.
Gas prices are 16 cents lower than they were at this time last year and the lowest they have been in over a year.
Prices have been falling steadily since the middle of November, when a gallon cost $3.80, and have been on a massive drop since the beginning of June, when prices hit an all-time record of $5.02 per gallon.
The drop in gas prices coincides with a decrease in the price of oil, which is refined into petroleum-based products, falling to $80.39 on Tuesday from its peak of $125.98 in June.
According to the Energy Information Administration, gas demand decreased slightly from 8.36 million barrels per day to 8.26 million barrels over the last week.
The cheapest gas is found in Texas, where a gallon costs just over $2.
Hawaii is the most expensive state with a price tag of $5.11.
By the end of the year, will prices fall below $3 per gallon? Patrick De Haan of GasBuddy warned that an upcoming cold front could affect refinery operations in warm-weather states. Andrew Gross said that the drop in oil prices could cause gas prices to fall a bit more before leveling off.
As energy supplies rebound, gas prices have fallen as several key oil refinery come back online. 3 million barrels of oil will be purchased by the Department of Energy. After opening 180 million barrels per sale in March, the Biden Administration cleared 14 million barrels for sale.
The national average of gas prices is the same as this time last year.
The average price of gas in the US is now $2.99 a gallon.
Gas prices will fall for seven days as the White House considers selling emergency reserves.
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