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.