(December 11, 2018) The national gas price average of $2.42 is the lowest pump price of the year, a price point not seen since mid-December last year. The average sits at four cents cheaper than last week, 28-cents cheaper than last month and four cents less than last year. The last time the national average was cheaper on the week, month and year was during July 2017, according to statistics compiled by AAA.

“Motorists are noticing a big difference as they fill-up at the gas pump this month,” said Jeanette Casselano, AAA spokesperson.

“Month-over-month, gas price averages have dropped double digits for every state. For some in the Great Lakes and Central states (Iowa, Kansas, Nebraska and Missouri) state gas prices are as much as 40-cents less than they were in November. In some states, gas prices are nearing $2 per gallon — something that hasn’t been seen since December 2017.”

Globally, crude supply is growing faster than anticipated. Contributing to the surplus is the United States’ record-breaking production levels — which hit the highest level ever recorded by the Energy Information Administration at 11.7 million barrels a day last month. In addition, there is more Iranian supply in the market than expected due to the U.S. granting crude sanction waivers to some of Iran’s largest importers, including India, South Korea and Japan.

How low can gas prices go? AAA expects the national gas price average to drop as low as $2.40 by the end of the year due to cheaper crude oil prices. However, pump prices this cheap may not last into 2019.

On Friday, the Organization of the Petroleum Exporting Countries (OPEC) announced that the cartel and non-OPEC members, including Russia, will reduce production by 1.2 million b/d for the first six months of the year. While the decision will help to reduce the high level of global crude supply, the move has the potential to increase oil and gas prices. Crude was up to $52.61 at the market close on Friday, while the week prior, crude was as cheap as $50 a barrel.

 Quick Stats

    The nation’s top 10 largest monthly decreases are: Iowa (-40 cents), Kansas (-40 cents), Nebraska (-40 cents), Missouri (-38 cents), Arkansas (-37 cents), South Dakota (-36 cents), Georgia (-36 cents), Wisconsin (-36 cents), Mississippi (-36 cents) and Alabama (-36 cents).

    The nation’s top 10 least expensive markets are: Missouri ($2.00), Oklahoma ($2.06), South Carolina ($2.06), Texas ($2.08), Kansas ($2.09), Alabama ($2.09), Arkansas ($2.09), Mississippi ($2.10), Louisiana ($2.10) and Iowa ($2.15).