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How Long Will Low Gas Prices Last?

Two of the biggest concerns that comes with car ownership is finding affordable auto insurance coverage and the cost of filling up the gas tank. However, Illinois residents are getting a real treat this winter with low gas prices which are particularly helpful for holiday traveling. 

The average price for unleaded gas in Illinois is $2.35. Prices in Illinois gas stations during the first week of December were 13.9 cents per gallon lower than they were a year ago and 44.1 cents per gallon lower than they were in November. 

The national average price of regular gasoline is $2.39 a gallon which is six cents lower than this time a year ago.

Why are gas prices so low?

A huge surge in domestic production of oil and gasoline played a part. Domestic oil production is at a high of 11.7 million barrels per day. That is 21 percent more compared to last year. This means drivers in 32 states are paying less money to fill up their gas tanks.

GasBuddy estimated that the drop in gas prices has saved Americans nearly $200 million daily which was great for the economy this holiday season. According to GasBuddy, 4 percent of gas stations in the country are selling gasoline for less than $2 per gallon. Analysts for the popular gasoline website estimate gasoline prices in the U.S. will average $2.70 in 2019.

How long will low gas prices last?

Gas experts say they are not expecting the low gas prices to last long into 2019. AAA expects the average gas price to remain under $2.40 gallon by the end of the year, but the low gas prices might not last much after that. The Energy Information Administration reports U.S. oil supplies declined after accumulating a big inventory over the previous weeks.

With inventories falling, AAA said it expects lower supplies which will lead to an increase in oil prices in early 2019.

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