Prices at the Pump Continue to Plummet: Is $1 Gas in Your Future?

The price of fuel fell below the $2 mark in New York City over the weekend

The price of fuel fell below the $2 mark in New York City over the weekend

By Paul Riegler on 18 January 2016
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As the price of crude oil continues to fall (it’s currently at $29 a barrel), the price motorists are paying at the pump is dropping in lockstep.

The average price for a gallon of regular gasoline in the United States is $1.894 as of Monday, according to the Automobile Association of America.

Meanwhile, gas price tracking website GasBuddy reported one filling station in Michigan with a price of 47 cents per gallon and a gas price war among several stations in Houghton Lake, Michigan that temporarily brought the price per gallon as low as 78 cents per gallon.

In New York City, several staff members spotted filling stations selling gas at $1.99 per gallon, in some cases with no credit card surcharge.

Several Frequent Business Traveler readers reported low prices for their areas including $1.57 at the Costco in Wharton, New Jersey and also at the Sam’s Club near the Lakeline Mall in Austin, Texas. Another reader reported prices of $1.69 at the Costco in Herndon, Virginia and $1.70 at the Sam’s Club there.

Diesel prices continue to remain higher than regular gasoline although the average price per gallon for diesel of $2.156 is now 26 cents lower than the price of premium. Diesel prices have dropped $0.76 over the past 52 weeks, not as steep a decline as gas prices but nonetheless in lockstep.

Adjusted for inflation, the price we pay at the pump today is far less than what people were paying in 1970, several years before the Arab Oil Embargo. Back then, a gallon of gasoline cost $0.36 that, in today’s dollars, is $2.20.

The continuing drop in price in crude oil – some experts expect the price to drop to $20 a barrel – may also cause  gas prices to drop to as low as $1 per gallon in the coming months as investors brace for Iran’s return to global oil markets.

(Photo: Accura Media Group)

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