Americans can sigh a breath of relief this holiday season as U.S. gas prices for Thanksgiving reached their lowest levels since 2008 at $2.08 per gallon. And the price of gas could continue to decrease to less than $2 per gallon by Christmas.
"The low price of oil is delivering the best gas prices in years," AAA spokesman Mark Jenkins said, according to the Washington Times. "Motorists are now saving an average of $18 for a full tank compared to two years ago when prices were above $3. These savings couldn't come at a better time, as Americans allocate money for holiday shopping and travel."
According to a Daily Fuel Gauge Report from AAA, the national average price of gasoline has dropped for 24 straight days. The price of gas is also lower by 74 cents compared to a year ago.
Residents living in the Midwest and the South experienced a bulk of the gas savings. States with the current lowest gas prices include Michigan ($1.81), Missouri ($1.81), and Ohio ($1.82). And nearly half of all states are currently paying less than $2 per gallon.
Numerous factors are behind the declining gas prices: the oversupply of crude oil, a stronger U.S. dollar, and planned refinery maintenance. Low seasonal demand will keep the prices down in the winter. If the economic trends continue, Americans might pay only about $1 per gallon of gasoline in 2016.
According to a JPMorgan Chase report from October, American households will save an average of $700 a year due to the lower gas prices. The savings equate to 1 percent of the monthly income for many low-income individuals. Eighty percent of the savings will be spent, which will improve the economy.
Lower gas prices also means that natural gas prices used for heating will decrease.
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