Here's a welcome holiday present for motorists - gas prices may fall below $3 a gallon before year's end, with some 35 states already reporting at least one station with prices below the mark, according to a report from CNBC. That's a big drop from the current $3.25/gal national average, and it could expand.

CNBC cites a report from the American Automobile Association, which claims that 10 states, mainly in the South and Gulf Coast regions, will see prices drop below $3 per gallon, while the national average will fall to $3.10 before 2014 arrives. "There's a chance gasoline will dip below $3, but it will take a considerable rebound in the US dollar or financial collapse to bring the national average below that," Tom Kloza of Gasbuddy tells CNBC.

Besides the falling price for a barrel of crude, which now sits around $95, the drop in the cost per gallon is also being blamed on the switch to the traditionally cheaper "winter blend," which costs anywhere from 10 to 15 cents less than the "summer blend," according to AAA's Michael Green. The relief at the pump could be here for a while, too. "Prices probably won't start to rise again until Valentine's Day as we anticipate the spring and summer driving season of 2014. But for now, this market is well supplied," said Anthony Grizanti, of GRZ Energy.

That's good news for those on a budget, but we're guessing that the drop in prices won't do anything to reduce America's dependency on fossil fuels or further the sales of hybrid and electric cars, most of which have been struggling to find buyers in numbers large enough for car companies to make profits on them. Win some, lose some. Have a look below for a news clip from the CNBC story.


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  • 142 Comments
      goodoldgorr
      • 1 Year Ago
      Even if gas prices fall to below 3$ and even if it fall below 1.50$/gallon i will still probably buy a used volt in the future. That might be good as used prices for a volt might shrink more is gas get cheaper. If gas prices fall i will drive more long distance runs then i do now but i will drive at the same relative low speeds to reduce my co2 footprint. If gas prices fall it will be a bad news for imievs, leafs, volts, i3s, i8s, spark evs, hybrids, etc but for connoisseurs they should stick to what drive best and electric might not just be to save gas.
      BIG POPPY
      • 1 Year Ago
      funny how the price of a barrel of oil has dropped by several $$$, yet where I live, in the Hilton Head area of SC, gas prices have stayed at $3.15/gallon until last week, when they "plummeted" to $3.13... if I didn't know better, i'd swear they were price fixing...
      Andrew Kang
      • 1 Year Ago
      Good news!
      GoGOGadgetZOom
      • 1 Year Ago
      HOLLA! I'm already taking advantage of $2.84/gal. in Dallas!
      rkeeeballs
      • 1 Year Ago
      Gas and food are the biggest family budget busters happening....A gas fill up for $80 vs. $50 might not seem like a big deal to some but, for many it is a couple of family dinners $.....$30 savings times millions of Americans will help the economy in many...many areas :>)......hope it comes true...... yup.
      cefntx
      • 1 Year Ago
      Here in North Texas its been below 3.00 for at least two months, maybe three.
      4gasem
      • 1 Year Ago
      Huh? Gas/Petrol is 2.76 at the local Kwik Shop today. It's been under 3 bucks for quite some time now.
      ns39446
      • 1 Year Ago
      Gas was $3.01 in Louisville, Ky on Sunday. Today it was $3.28. Why does it jump 25 cents or more a gallon and only fall 1 or 2 cents at a time?
      Sean Smith
      • 1 Year Ago
      $2.95 a gallon for regular in Alpha, New Jersey
      daewootech
      • 1 Year Ago
      It's a trap! People gonna flock to some nice high HP vehicles and then the price is gonna go back up to $5
        raktmn
        • 1 Year Ago
        @daewootech
        Thank you for proving the need for higher CAFE requirements for fleet MPG.
        calderasf
        • 1 Year Ago
        @daewootech
        Except many of those hogs are no longer made
        Spec
        • 1 Year Ago
        @daewootech
        Yes, it could indeed be a big trap . . . or not. If China increases oil usage and the growth of fracked oil slows down, the prices can go back up. Iran remains a HUGE wild card. If sanctions against them are dropped, oil prices could go even lower.
      strykerzzzz
      • 1 Year Ago
      What is in (or not in) the cheaper "Winter Blend" gas anyway? Every time they do the switch, my average commute mpg drops from about 31 to 28.
        JeffMGrant
        • 1 Year Ago
        @strykerzzzz
        @ strykerzzzz - Winter blend gas contains more butane than summer blend since butane evaporates out of the gas too quickly during the summer and can expand gas tanks, cause vapor lockup, and drift into the air, etc. VOCs (esp. butane) in the air causes more ozone in the summer. Butane is a much cheaper component of gasoline blends, and we're swimming in it due to tight oil wells and fracking in Texas and North Dakota. Now that it can be added in the winter blend in higher amounts, the price of gas drops quite a bit. It's also the reason you may get lower mileage out of winter gas, even though butane is high octane it contains less energy (BTUs) than other heavy components in gas.
        CoolWaters
        • 1 Year Ago
        @strykerzzzz
        Winter causes long warm up periods, using more gas, the temperate drop alone will lose you up to 5 mpg.
      Dorth
      • 1 Year Ago
      If gasoline goes below $3.00 in New York State, it would be a miracle. There are to many taxes on the gas here. To many people have to big pockets and their hands in the cookie jar for it to go down. New York has the highest in everything, and is a terrible place to live. I came here from Florida, and I certainly wish I could go back. Hardly any taxes there. No state tax, Homestead tax on your property taxes, and hardly any gasoline taxes. Come on New York, have a heart, and just don't live for New York City. They get everything. We make the electricity for them and we pay the highest bills. $3.00 a gallon, I'll wait to see it!!!!
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