TAMPA, Fla. — The price of gasoline tumbled lower last week as it continues to adjust to increased supplies and low oil prices. The average price of gasoline was $2.19 on Sunday, a 2 cent decline from last week.
“Prices should remain low through the holiday season,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “The national average could dip well below $2 a gallon by Christmas as long as oil prices remain low and there are no interruptions in gasoline supply.”
For the entire month of October, gas prices averaged $2.26 nationally, $2.17 in Florida, $2.12 in Georgia, and $1.99 in Tennessee. Overall, October pump prices shifted lower by an average of 11 cents nationwide, 11 cents in Georgia, and 6 cents in both Florida and Tennessee.
NOVEMBER/DECEMBER GAS PRICES
Looking forward, prices typically fall during the final months of the year. Since 2000, gas prices shifted lower by an average 16 cents from November thru December. Last year, motorists saw a major drop. The average price fell 74 cents nationwide from November 1 the December 31, 2014. That was largely due to the price of oil falling from $79.79 to $53.27 during that same period of time. However, pump prices are unlikely to drop by that same margin again this year, as the price of oil fell to $45 a barrel mid-summer, kick-starting the discount at the pump that motorists are currently enjoying.
“However, pump prices continue declining because their adjustment to the lower price of oil was recently interrupted by refinery maintenance season, which caused a temporary jump in the price of gasoline," Jenkins said. "Most refineries are now running at full capacity, supplying enough gasoline to meet seasonal demand.”
Historically, the price of gas declines by an average of 11 cents nationwide during the month of November alone (dating back to the year 2000). Last year, the average price of gasoline fell 22 cents throughout the month of November – the highest monthly decline for November since 2008 (64 cents).
However, the downward trend in gas prices accelerated last December. The average price dropped 51 cents during the final month of 2014. Since 2000, gas prices nationwide have fallen an average of 5 cents, during December.
“It is unclear exactly how low gas prices will go this year, but motorists should expect these low gas prices to hang around through the rest of the year and into February, when another round of refinery maintenance typically causes prices to climb,” Jenkins said.
