2015 gas prices second-cheapest in a decade, AAA reports

(January 2, 2016) The national average price of gas in 2015 was $2.40 per gallon, which was the second cheapest annual average of the past 10 years, AAA said in its year-end gas price report.  Only 2009 was lower during that time. This year’s annual average was about 94 cents per gallon less than 2014.
   
AAA estimates that Americans saved more than $115 billion on gasoline this year compared to 2014, which was an average of more than $550 per licensed driver.
  
The most expensive daily national average of the year was $2.804 per gallon on June 15, while the lowest was $1.998 per gallon on Dec. 21. Average gas prices dropped below $2 on Dec. 21 for the first time since March 25, 2009.
   
The average price of diesel in 2015 was $2.71 per gallon, which was the lowest average for the fuel since 2009. Last year diesel averaged $3.81 per gallon.
   
The average price of premium gasoline in 2015 was $2.84 per gallon, which was about 87 cents per gallon less than the previous year. The average difference between regular and premium was 44 cents per gallon in 2015, which was the largest difference on record.
   
Fuel prices remained relatively low throughout the year due to a worldwide glut in crude oil. There was more than enough oil to meet demand around the world, and that allowed oil prices to drop to the lowest levels since 2009.

This week's national average price of gas is $2 per gallon, which is the lowest average for New Year’s Eve since 2008. Today’s average is about 26 cents per gallon less than a year ago. The national average price of gas for December was $2.01 per gallon, which was the lowest monthly average since March 2009.

Gas prices are lower than $2 per gallon in most parts of the country. About 71 percent of U.S. stations are selling gas for less than $2 per gallon today, and drivers can find at least one station selling gas for less than $2 in 47 states.
   
The cheapest one percent of stations are selling gas for an average of $1.56 per gallon, and more than 16,000 stations across the country are selling gas for less than $1.75 per gallon.
   
The five states with the lowest average prices this week include: Missouri ($1.72), Oklahoma ($1.75), South Carolina ($1.75), Arkansas ($1.75) and Tennessee ($1.76). The five states with the highest prices today include: California ($2.85), Hawaii ($2.69), Nevada ($2.51), Washington ($2.47) and Alaska ($2.47).

California had the most expensive annual average of any state in 2015 for the first time on record. California’s annual average was $3.16 per gallon. California’s refineries experienced a significant number of problems throughout the year, which disrupted regional production and kept gas prices higher than expected.
   
Gas prices in Southern California were even higher than the rest of the state. For example, the annual average in Los Angeles was $3.29 per gallon in 2015. Despite paying relatively high prices throughout the year, California’s average was still 59 cents per gallon less than 2014, due to the relatively low cost of crude oil.
   
The next most expensive states for gasoline included Hawaii ($3.10), Alaska ($2.97), Nevada ($2.86), Washington ($2.73) and Oregon ($2.68).
  
Since 2000, Hawaii has typically been the most expensive state for gasoline, and its average was the highest for 13 out of the previous 16 years. Alaska’s average was highest in 2008 and 2009.

South Carolina’s annual average price of gas was the cheapest in the country for the fourth year in a row at $2.10 per gallon, and this also was the lowest annual average for the state since 2004. Drivers in South Carolina paid about $1 less during the year than in 2014.
   
The next lowest gas prices were also in the Southeastern U.S. in Mississippi ($2.14), Alabama ($2.15), Tennessee ($2.16) and Louisiana ($2.18).
  
Gas prices are likely to remain relatively low in 2016. AAA estimates the annual average price of gas in 2016 is likely to end up between $2.25 and $2.45 per gallon, which would be cheaper or at least comparable to this year’s average of $2.40 per gallon.
   
Based on typical seasonal trends, the national average price of gas could remain relatively flat or drop another 10 cents per gallon over the next few weeks. By late winter, the national average could rise 50 cents per gallon or more as refineries conduct seasonal maintenance in advance of the busy summer driving season. Despite the likelihood of higher prices by spring, AAA does not expect the national average price of gas to rise above $3 per gallon in 2016.