Gas prices below $2 a gallon for 1st time since ’09

Gasoline just keeps getting cheaper in Michigan, where the average pump price dropped Thursday to $1.97 a gallon — the lowest since March 2009.

Prices on New Year’s Day 2015 were down 13 cents in the past seven days, AAA Michigan said. Gas was 42% cheaper than it was one year ago, when the average price per gallon was $3.37.

“Gas prices continue to drop due to a significant decline in crude oil costs,” auto club spokeswoman Susan Hiltz said. “Crude oil represents about two-thirds of the cost of gasoline and is directly correlated with changes in gas prices.”

Dearborn-based AAA Michigan surveys fuel costs at 2,800 Michigan gas stations daily.

The latest price report marks a dramatic turnaround in gas prices. The statewide average peaked at $3.96 a gallon on June 16 before beginning a steady decline, according to the auto club. The national average also hit its 2014 high in June, reaching about $3.66 a gallon.

Nationwide, the average gas price was $2.24 a gallon Thursday, AAA said. It said drivers in the Midwest were paying the least for gas, while the most expensive prices in the contiguous 48 states were in the Northeast. Only Alaska at $3.09 and Hawaii at $3.53 a gallon averaged more than $3 this week.

If Michigan’s sub-$2 prices seem too good to last, they probably are, senior petroleum analyst Patrick DeHaan with GasBuddy told the Detroit Free Press. But even as prices make their expected rise, they probably will remain under $3 a gallon through 2015, he said.

“This may be getting as close to as good as it gets,” said DeHaan.

As read on: http://www.freep.com/story/news/local/michigan/2015/01/02/gas-prices-michigan/21178567/

Advertisements
%d bloggers like this: