U.S. gasoline prices cheapest since January

Fan-Tankstelle von Dynamo Dresden (Photo credit: Wikipedia)

The national average price of gasoline has dropped 50 cents from a recent peak of $3.94 on April 2, according to the U.S. Energy Information Administration. And the price of crude is falling even faster.

West Texas Intermediate crude, the domestic benchmark oil price, has dropped 63 cents per gallon over the last 12 weeks. The global Brent crude price is down 81 cents per gallon.

Regular retail gasoline has fallen to its lowest average price since January. In Texas, the average gasoline price hit $3.24 this week, compared to the recent peak of $3.81 on April 9, according to the EIA.

AAA’s Fuel Gauge Report shows that one state has seen its average gasoline price drop below $3 – South Carolina.Global economic woes have pushed down the price of crude. But U.S. gasoline demand has risen slightly and moderated the price decline. The EIA determined that about 80 percent of the change in crude oil prices is typically passed on to drivers within four weeks. If consumers received the full benefit of crude price declines, they would save 2.4 cents per gallon for every $1 per barrel drop in the oil price. Americans are now spending roughly $200 million per day less on gas than in early April, when gas peaked at $3.94 per gallon. And analysts are expecting further declines. One economist on Tuesday forecast the national average will soon fall to $3.10 per gallon.... Continue to read.

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