Many drivers are extremely happy that the recent drop in the cost of oil resulted in the cheapest gas prices in 12 years. Oil prices have dropped into bear market territory while gasoline prices also decreased since June 2nd. Nationally, the average price for a gallon of regular is now $2.28 which is 10 cents lower since the start of the month.
Wholesale gas prices propose that prices drivers pay will keep decreasing and that this weekend could result in the cheapest prices so far for 2017. Tom Kloza, chief oil analyst for the Oil Price Information Service tracks pump prices for AAA and says that there are plenty of oil out there right now that can be turned into gasoline.
Despite all of this, the start of summer is usually not a time for low gas prices because people drive more and demand for gasoline rises. Gas stations are also required to sell a special type of gas called the summer blend which creates less pollution, however, it increases prices slightly higher.
Many people predicted that oil prices would be in the $50s or even increased to $65 as well as $70, but for the first time this century, costs for gas could be cheaper over the July 4th holiday weekend than during the previous Christmas and New Year.
Gasoline sold for less than $2 a gallon is becoming very common and the cheapest station right now is South Carolina with a price of an incredible $1.96 a gallon. Within a couple of days, Oklahoma, Alabama, and Mississippi are also expected to sell $2 a gallon.