Since May this year the price of gasoline has been taking a nosedive. During the interim seven months the average price of a gallon of gas as gone down by one dollar. According to the Lundberg survey released on Sunday, gasoline is at the lowest price it has been in four years.
Regular-grade gasoline is going for $2.72 per gallon, down 12 cents since the last survey done two weeks ago. Some analysts compare the severe price drop to the similar price crashes which took place right after the recession of 2008.
Several factors have contributed to the bottoming out of the price of oil in recent months: weakening demand; a large growth in oil supply, especially from North America and Canada; and the strengthening of the dollar has also played a role.
“We may see a few more pennies drop before Christmas,” said the survey’s publisher, Trilby Lundberg. “All this presupposes that crude oil prices don’t bounce up significantly in the near future.”
Prices of gas vary across the lower 48 states. San Francisco is recording the highest gas prices, at $3.04 per gallon; while in Albuquerque, New Mexico, consumers were paying the least- $2.38 per gallon.
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