Petroleum experts believe as many as 20 states will have average gas prices below $2 per gallon before Christmas of this year, which is good news for motorists.
2015 Gas Prices Set to Decrease
Experts at both GasBuddy and AAA have similar forecasts for the price of gas for the remainder of 2015: It will be continually lower. Here are GasBuddy's projected monthly averages for the rest of 2015:
- September: $2.43 per gallon
- October: $2.28 per gallon
- November: $2.10 per gallon
- December: $1.98 per gallon
The price drop is already in effect in many areas of the country. As of September 7th of 2015, 20 states had at least one gas station selling gas for under $2 per gallon. In fact, 10.1% of gas stations in the nation are now selling gas at $1.99 per gallon or less.
Why are Gas Prices Falling?
There are three main reasons gas prices are set to drastically decline through the end of 2015.
- Crude Oil Prices
Predicting gas prices is largely based the cost of crude oil, which happens to be depressed right now. AAA believes the reasons for the low cost of crude oil are abundant stores and elevated production.
- Summer’s Ending
It's typical for gas prices to drop in the autumn. While demand for gas is much higher during the vacation-heavy summer season, motorists tend to use less of it in the fall. Now that Labor Day weekend is behind us, expect to lower prices at the pump in short order.
- The Switch to a Winter Blend
Refineries switch to a lower grade of gasoline in the colder months, which happens to be less expensive. They are allowed to switch starting on September 15th.
Of course, this is all subject to change based on the overall health of the petroleum market. As we just saw in early August thanks to a major refinery issue in Indiana, unexpected changes can drastically alter gas prices. Gas prices soared in the Great Lakes region for about three weeks following the equipment malfunction in Indiana, but the expected price drop is currently back on schedule.
Will My State Be One of Those Lucky 20?
Here are the states most likely to see the average price per gallon fall below $2 by Christmas:
- Midwest: Indiana, Kansas, Michigan, Missouri, Ohio
- The South: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia
- Northeast: Delaware, New Jersey
What This Means For You
If you have bad credit but are in need of an auto loan, this makes it an opportune time to get one. Lower fuel costs means more money for you to set aside as a down payment or to save up for future monthly installments. And if you need a lender, we here at Auto Credit Express can help. We specialize in helping people with damaged credit find the auto financing they deserve. All you need to do is fill out our fast and secure application and you could soon be taking advantage of the low gas prices.