A GreeneCountyNewsOnline Good News post Oct. 12 noted that gas had fallen below $3 a gallon in Jefferson during the previous week. AAA of Minnesota predicted the price would continue to drop; the prediction was correct.
The price fell twice this past week. On Monday, the price was at $2.49. It had been there for a few weeks, and it was time for an updated Good News post. The price fell on Friday… update the photo.
On Saturday, it fell again! Gasoline is now $2.33 in Jefferson. As most of us are stretching our budgets for Christmas, we’re getting a little slack on fuel costs.
The good news is predicted to get even better. The national average price on Monday (when the price was $2.39 in Jefferson) was $2.67, the lowest since February 23, 2010, according to AAA. The national average was predicted to fall to $2.50 by Christmas. That’s another 17 cent decline.
According to AAA, the peak average price in 2014 was $3.70 per gallon in April.
AAA explains that gasoline prices typically decline from fall into winter, due in part to decreased demand. The price of crude oil accounts for about two-thirds of the price at the pump, and it would take a $10 per barrel drop in the price of crude to bring about a 25 cent drop in retail prices. AAA says $2 gas isn’t likely; a post on the International Business News website said $2 gas is possible.
Global oil markets are still seeing the impact of a decision by OPEC to sustain production levels. The price of US domestic crude has fallen, and Saudi Arabia has sustained price cuts and is offering oil at a lower price than in 14 years. Read more about it in the AAA Newsroom.
Most of us are content to let the economists figure out the “why” while we whistle a happy tune about the “what.” It’s nice to see the numbers on the gas pump flash a little slower.
