Cheap Gas Prices: Thanksgiving 2014 to Bring Cheapest Gas Since 2009, But Costs Are Still High in Western States
Gas prices will be the cheapest they have been for Thanksgiving since 2009 according to AAA research.
For example, in New Jersey where the prices are averaging about $2.76 per gallon, AAA spokeswoman Tracy Noble is expecting a 5- to 10-cent drop in price per gallon for Thanksgiving 2014. The average price per gallon for Thanksgiving 2013 in the state was $3.13, now it is expected to be around $2.70.
South Carolina has the cheapest average price per gallon in the U.S. with prices averaging at about $2.60 per gallon according to GasBuddy.com, a gas tracking website.
Crude oil has been dropping in price, AAA says. Now the cost of a barrel of crude oil is below $75. It had been trading over $100 earlier this summer.
Additionally, the U.S. is beginning to make more of its own gasoline domestically. This is allowing them to have more bargaining power with foreign countries like Saudi Arabia.
Other states enjoying cheap gas are:
New Mexico: $2.66
Western states are still struggling to crack below the $3 mark. Nevada is averaging about $3.04 per gallon, California $3.14, and Hawaii is way up at $3.95 per gallon.
The decrease in prices is sure to send more travelers to America's highways. With cars getting much better gas mileage, a gallon of gas is much easier on the average consumer's pocket than it was just last year.
Unless a major crisis occurs, gas prices could be low for quite some time. Goldman Sachs is expecting oil prices to remain below 100 and less dependence on foreign oil in 2015 for the U.S., Business Insider reports.
What do you think about the U.S. gasoline sitatuon? Are gas prices at a fair price or should they continue to drop? Leave us a comment below and let us know what you think.