Chattanooga gas prices on Sunday were 42 cents per gallon below the U.S. average of $2.60 per gallon.
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Gas prices are down, and they are about to fall even further – perhaps to less than $2 a gallon in some areas.
After soaring well above the rest of the nation, the average gasoline price in the Los Angeles region fell nearly 25 cents below their highs of a month ago. Over the same period, the price of crude oil has fallen from $55 to under $44. The lowest local price of $2.35 was offered by membership retailers Sam’s Club and Costco.
But if gasoline prices keep dropping, expect consumers to spend more in restaurants and shops, said Chris Christopher, director of consumer economics at IHS Global Insight.
Gasoline prices continued moving down in California and the Inland region Monday, but still have not recovered from July’s price spike. That’s a drop of more than 80 cents since previous year.
The decrease in gas prices has led to increased economic optimism. Recently, gas prices reached a one-year low.
Gas prices typically drop in the fall and winter because refineries switch to winter-fuel blends, which are cheaper to produce.
But for visitors along the Interstate 95 corridor, Nelson said low prices could inspire a last-minute beach trip.
Oil traders are signaling lower prices in the futures markets.
So how low will gas go?
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Prices in the Chicago area range from $2.40 in some suburbs to more than $3.50 at some stations in the city. To give you an idea of what a ride it’s been, gas prices are down 17.3 cents in the past month.
