According to AAA officials, the national average price for regular unleaded gasoline has fallen for 27 consecutive days, reaching Tuesday’s average of $2.38.
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With oil prices continuing to fall, Chattanooga gas prices are down 91.4 cents per gallon from the same time a year ago, including a drop of 22.2 cents per gallon lower than a month ago.
Thanks to an American energy revolution that is boosting domestic supplies and a tepid global economy that is depressing demand, oil prices are at record lows.
Prices generally are lower in the Tampa area, which traditionally has some of the cheapest fuel prices in the state.
“They were buying gas at the wholesale level, so they were trading at very high prices and a lot of gas stations, especially in LA, they have to buy gas every day”, Mac explains. More than half of all U.S. states in late 2014 posted averages below the $2 mark.
The BP refinery shut down the largest of its three crude distillation units for repairs last Saturday, reducing production of gasoline for the Midwestern market. That price has dropped by almost 70 cents since last month.
AAA reports that the reason behind the price drop is that cheaper crude oil is driving down prices.
Because Florida lacks a fuel pipeline, Jenkins said, Gulf Coast oil refineries have to deliver gas to the state by tanker ship.
California, with $3.58 per gallon, is still the most expensive retail market for gasoline though prices have been falling for the past two weeks by 23 cents per gallon.
“Oil is being pushed lower by concerns about a slowdown in Chinese economic growth, strong output from North America and the Middle East, as well as the tentative nuclear deal with Iran, which could bring more of that country’s oil to the market”, CNN Money said.
According to My Fox Chicago, people in some areas of the Midwest will see prices dip below /gallon by Christmas.
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West Texas Intermediate grade crude for September delivery fell $1.07, or 2.5%, to settle at $42.23 a barrel on the New York Mercantile Exchange, its lowest close since March 3, 2009.
