Gas prices hit a low for the year on Tuesday as oil’s plunge led to relief at the pump for American motorists.
The average national price of gas was $2.41 on Tuesday, according to AAA. That was 3 cents lower than a week ago, 29 cents lower than a month ago and 5 cents lower than a year ago.
Since gas briefly topped $2.90 per gallon in October, prices have plunged.
Fueling the slump: oil’s slide amid concerns about the economy and a glut of petroleum production. The U.S. price of oil has fallen by nearly a third since its early October peak to less than $52 on Tuesday afternoon.
Gas is likely to continue heading downward as the holiday travel season approaches. AAA projected that the average price would likely fall to as low as $2.40 by the end of the month.
As of Monday, the lowest state, Missouri, was averaging $2 per gallon. Oklahoma and South Carolina were tied for the next cheapest at $2.06.
California was the most expensive in the contiguous 48 states with gas averaging $3.45 a gallon as of Monday. And gas in three states – Iowa, Kansas and Nebraska – was 40 cents cheaper than a month ago. That amounted to savings of $6 on a 15-gallon fill-up.
The highest average ever for retail prices was $4.10 in July 2008, according to fuel-station-finding app GasBuddy.
The oil cartel known as the Organization of the Petroleum Exporting Countries and other cooperating countries agreed last week to slash oil production by 1.2 million barrels per day in a bid to increase prices.
But “we are unlikely to move swiftly into the next price rally,” JBC Energy analysts said this week in a research note.