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Gas prices could fall below $2 for many Americans

Here's some good news for drivers in the United States: Gasoline could fall below $2 a gallon for many Americans later this year.Retail gas prices hav...

Posted: Jun 12, 2019 12:16 PM

Here's some good news for drivers in the United States: Gasoline could fall below $2 a gallon for many Americans later this year.

Retail gas prices have been falling steadily for several weeks now. The national average currently stands at $2.72 a gallon for regular gas, according to AAA, down 17 cents from the 2019 high in early May and down 7 cents in just the past week.

Wholesale prices are falling even faster, suggesting that prices at the pump should continue to fall.

"Pretty much every portion of the country should see drops between now and the end of next week," said Tom Kloza, head of energy analysis for the Oil Price Information Service.

Most of the decline is because of falling oil prices, in part thanks to booming US oil production. That has made up for cuts in production by OPEC nations designed to support prices. Oil prices have also fallen in part because of weaker-than-expected demand for gasoline in international markets, particularly China, where slowing economic activity has cut into auto sales.

Gasoline prices have fallen fastest in parts of the country where $4 gas was the norm at the end of last month. In California, which still has the highest average price at $3.86 a gallon, prices have fallen by 23 cents. And wholesale prices in the West are falling even faster than elsewhere in the country as refineries there that had been shut come back online.

"[Gas prices] should continue to fall as we move through the summer," said Kloza. "There's a high probability we'll be paying less than $2.50 in the next few months."

The national average price will probably decline even more — perhaps to $2.25 a gallon according to Kloza — later in the year. Once the summer driving season ends, demand for gas falls, pushing down prices. So does a switch away from the more expensive blend of gasoline required in the summer months to control smog.

A national average of $2.25 a gallon would probably mean that nearly half the nation's gas stations will be selling regular gas for less than $2 a gallon, Kloza said.

California Coronavirus Cases

Data is updated nightly.

Cases: 3055568

Reported Deaths: 34441
CountyCasesDeaths
Los Angeles103280614122
San Bernardino2561091560
Riverside2504362645
San Diego2168352109
Orange2148082477
Santa Clara943661109
Kern86718565
Fresno82485968
Sacramento806781111
Alameda67952765
Ventura62101436
San Joaquin58290786
Contra Costa52965450
Stanislaus42882758
Tulare41867506
Monterey36126255
San Mateo32596309
San Francisco29321262
Solano25806106
Imperial25317465
Santa Barbara25083236
Merced24452308
Sonoma24068240
Kings19435145
Placer17380180
San Luis Obispo15929136
Madera13443151
Santa Cruz12298113
Marin11693157
Yolo10620131
Shasta9776122
Butte9474123
El Dorado782644
Sutter775478
Napa760140
Lassen519516
San Benito496343
Yuba495127
Tehama397142
Tuolumne338240
Nevada320673
Mendocino311432
Amador301631
Lake261230
Humboldt239324
Glenn193519
Colusa17339
Calaveras161723
Siskiyou144613
Mono11214
Inyo97429
Del Norte8662
Plumas5895
Modoc3853
Mariposa3464
Trinity3024
Sierra820
Alpine730
Unassigned00
Chico
Clear
46° wxIcon
Hi: 67° Lo: 36°
Feels Like: 46°
Oroville
Clear
47° wxIcon
Hi: 63° Lo: 50°
Feels Like: 47°
Chico
Clear
46° wxIcon
Hi: 60° Lo: 46°
Feels Like: 46°
Red Bluff
Clear
40° wxIcon
Hi: 46° Lo: 17°
Feels Like: 37°
Red Bluff
Partly Cloudy
40° wxIcon
Hi: 65° Lo: 41°
Feels Like: 37°
Chico
Clear
46° wxIcon
Hi: 69° Lo: 40°
Feels Like: 46°
As expected, we had much quieter weather around northern California on Wednesday with plenty of sunshine, much weaker wind, and a wide range of temperatures. Thursday will be similar, but much more active weather is coming.
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