As of Tuesday morning, the average price for a gallon of regular unleaded gasoline was $3.397 according to AAA, more than 6% lower than prices from one month ago and the lowest average price since early February. Since their peak in mid-July of 2008, gas prices are down $0.66 per gallon or 16%.
Not long ago, Americans were bracing for a dramatic spike in gas prices for the summer of 2012, with many experts believing that prices would easily break the $5 per gallon mark. Now, analysts say that a combination of weak demand and global economic uncertainty has led to a fairly dramatic drop instead.
And fortunately for American drivers, the trend is predicted to continue. According to a recent report by USA Today, analysts expect to see gas prices many of us wouldn't even dream about in the not too distant past.
"The market is suggesting gas below $3 by Halloween, and certainly by Thanksgiving," said Tom Kloza of the Oil Price Information Service to USA Today.
The drop is enticing more Americans to drive and with the Fourth of July holiday coming up next week, you may want to brace for some serious congestion. According to projections from AAA, 42.3 million people will travel more than 50 miles from their homes over the holiday, 35.5 million of whom will be traveling by car. The estimate is a 4.9% increase from last year and ties the past decade's current record of travelers on the road set in 2007.
Lower gas prices could have profound effects on everything from the Presidential election to the overall American economy, but, for the majority of us, it simply means a little extra spending money in our pockets.