US Gas Prices Stay at Rock Bottom for 6th Year
US gas prices keep going down and the lowest rate in six years has been recorded last week. As of Dec. 14, regular gasoline was priced at only $1.953 per gallon which is lower than in January when it was at $1.982 per gallon.
Analysts say that the continuous drop of prices is due to the fact that the demand is low while the supply is very strong. A leading source of real-time gas rates, GasBuddy, foresees many states will keep the prices low throughout the holidays.
As of this time, at least 30 states are already selling gasoline at $2 per gallon while around two thirds of U.S. have gone even lower by pumping gas at $1.99 or less, the gas website stated. It added that it is possible for the nationwide average rate to hit rock bottom at a price of $1.85 this winter, but it is most likely to go up again in spring as the demand grows.
And based on the survey conducted by Trilby Lundberg, the highest gas price as of now is in Los Angeles at $2.71 and so far, the lowest is in Tulsa at $1.72.
Mark Vitner, senior economist from Wells Fargo Securities stated on Winston Salem Journal that there is no pressure to hike up oil prices since its production is running smoothly and the available supply already surpassed the demand many times over. He further said, "It looks like prices will remain low at least until this spring."
With cheaper gas this season, the roads are expected to be crowded as more people are likely to go on trips for the holiday festivities. At least 100 million travelers are projected to travel this year-end holiday -- from Dec. 23, 2015 to Jan. 3, 2016, according to American Automobile Association.
"The holidays are a time for joining with friends and family, and the record number of people traveling this holiday should make for a joyous travel season," said Cathleen Lewis, director of public affairs and government relations of AAA in New Jersey.
"Rising incomes and low gas prices are helping to fill stockings this year, and more people than ever will choose to spend those savings on travel this year," AAA president and CEO Marshall Doney added.
The estimation given for the number of people who will hit the road by the end of the year to early 2016 means that one in three Americans will drive further than 50 miles during the holidays. But even with the long drives, drivers will save about $540 this year as the result of cheaper gasoline.
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