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WASHINGTON, D.C. — Americans have another reason to be jolly for Christmas week. The average price of gasoline dipped below $2 per gallon Monday morning for the first time since March 25, 2009, according to AAA.
The average price reached $1.998 Monday, and Americans have saved more than $115 billion on gasoline this year, which equals more than $550 per licensed driver. More than 91 million Americans will take advantage of cheaper fuel prices to drive 50 miles or more during the upcoming holiday period, predicted AAA.
“Drivers across the country are celebrating the historic return of cheaper gas prices,” said Marshall Doney, AAA’s president and CEO. “The lowest gas prices in nearly seven years are a holiday gift that few consumers could have imagined when gasoline was $4 a gallon.”
More than two-thirds of U.S. gas stations are selling gas for less than $2 per gallon, with at least one station selling gas for less than that price in 47 states. The nationwide average is about 41 cents per gallon cheaper compared to the same time in 2014.
The states offering the cheapest gas are Missouri ($1.77), Oklahoma ($1.78), South Carolina ($1.78), Tennessee ($1.79) and Kansas ($1.79). Kansas City, Mo., has the cheapest metro average in the country at $1.68 per gallon, reported AAA.
“We have witnessed a dramatic shift in gas prices that has saved families hundreds of dollars so far this year,” said Doney. “The best news of all is that there is room for prices to drop even more in the coming weeks.”
Gas prices are low today due to a glut in worldwide supply, as well as decline in demand as the nation enters colder months. When gas prices last dipped below $2 per gallon between November 2008 and March 2009, global demand was quite weak due to the effects of the Great Recession.
AAA predicts gas prices will remain low through January and could drop even further if the cost of crude oil remains weak.