Crude oil price dip leads to gas price drop.
The gas price average has dropped to $2.46, a new low for 2018, and drivers in 32 states are also paying less to fill up compared to this time last year. The gas price average is two cents lower than it was one year ago, according to AAA.
AAA reported that the last time the daily national gas price average was cheaper year-over-year was 18 months ago on July 6, 2017 when gas prices were $2.24 (versus $2.26 on July 6, 2016).
Gas prices are down 31 cents compared to last month. What’s more, some 24 states saw gas prices fall by double digits over last week. Crude prices are responsible for the drop.
“Cheap crude oil prices are driving fuel savings at the pump,” said Jeanette Casselano, AAA spokesperson. “Last week crude dropped to its lowest point of the year at $50/bbl. However, this week’s Organization of Petroleum Exporting Countries (OPEC) meeting could cause crude oil prices to jump if the organization decides to reduce crude production.”
OPEC is expected to make an announcement on crude production at its Dec. 6 meeting in Vienna, Austria. The scheduled OPEC meeting has not had a negative impact on gas prices so far, AAA pointed out.