A global oil supply glut and a sanction-free Iran is helping push the pride of crude further down, and this is creating the cheapest U.S. gas in years.
AAA reports today that the national average for regular gasoline at the pumps is $1.89 per gallon. That’s not that far from where the national average stood a year ago ($2.06). But the outlook for crude is bleaker, creating eye-popping gasoline signs promoting regular at below $1 a gallon in some places.
Motorists in Houghton Lake, Michigan, for example, could fill up at an average price of 77 cents a gallon — a price point not seen since the Beatles were still together in the mid-1960s. According to GasBuddy, a price of $0.53 per gallon was reported at the Beacon & Bridge Market in Houghton Lake, with the Marathon and Citgo both at $0.95 per gallon.
Gas Buddy is reporting that a price war is raging at gas stations in Houghton Lake, making Michigan the first state to see prices under $1 in years.
Over the span of 18 months, the price of gasolin across the U.S. has fallen from over $3.50 a gallon. Some U.S. states are already ushering in fuel prices below the national average. In Texas, the average was below $1.70 a gallon on Monday. There were plenty of gas stations throughout New Jersey reporting prices below $1.50 a gallon.