U.S. normal gasoline cost falls next $2.00 per gallon for initial time given 2009

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Based on EIA’s weekly consult of gasoline prices, a U.S. normal sell cost for unchanging gasoline fell to $1.996 per gallon (gal) on Jan 11, descending next $2.00/gal for a initial time given Mar 23, 2009. The U.S. normal sell unchanging gasoline cost had final approached, though not left below, a $2.00 symbol in early 2015. Falling gasoline prices are a outcome of descending wanton oil prices and a anniversary slack in gasoline demand.

Image credit: U.S. Energy Information Administration

Image credit: U.S. Energy Information Administration

Four of a 5 regions in a United States now have averages next $2.00/gal, with a difference of a West Coast, where a sell unchanging gasoline cost averaged $2.63/gal on Jan 11. Gasoline prices on a West Coast tend to be aloft than elsewhere in a nation since of a region’s relations siege from other gasoline markets and aloft state taxes. Additionally, gasoline supply bondage on a West Coast are adjusting to several refinery outages that occurred in 2015, that tightened gasoline reserve and increasing prices.

During a new decrease in gasoline prices that began this fall, a U.S. Gulf Coast was a initial segment where prices were next $2.00/gal, that occurred in late October. Average gasoline prices in a Midwest and a Rocky Mountains fell next $2.00/gal in Nov and December, respectively. The East Coast normal gasoline cost was $1.999/gal as of Jan 4, 2016, creation it a many new segment with a sub-$2.00/gal gasoline price.

U.S. Energy Information Administration

Image credit: U.S. Energy Information Administration

EIA surveys a statistically deputy representation of 802 stations opposite a United States any week for gasoline prices. Stations are surveyed any Monday morning and news their self-serve cash-only prices, including all taxes, as of 8:00 a.m. internal time that day. Survey formula are reported in a Gasoline and Diesel Fuel Update after that day, one of a quickest turnaround times of any supervision survey.

Average gasoline prices reported by EIA paint a specific indicate in time for 3 grades of gasoline and dual formulations. EIA’s reported prices differ from AAA and GasBuddy averages that do not paint a specific indicate in time and do not yield apart prices by gasoline formulation, such as reformulated or required gasoline. AAA’s Daily Fuel Gauge Report is updated daily by a Oil Price Information Service (OPIS) formed on credit label exchange during adult to 120,000 stations. GasBuddy mostly relies on user-reported gasoline prices around a country.

As discussed in a Short-Term Energy Outlook expelled progressing this week, EIA expects gasoline prices to sojourn comparatively low via 2016, reaching a seven-year low of $1.90/gal in Feb before rising during a spring, and averaging $2.03/gal for a year. Gasoline prices are approaching to boost somewhat in 2017, averaging $2.21/gal by a year.

Source: EIA