24/7 Wall Street – by Paul Ausick
Experts have already begun to mention the chance that the average price for a gallon of regular gas will drop below $2 in some parts of America. There are several states where this is highly likely. As a matter of fact, the prices in these states could drop below $2 as early are the start of next year.
Most of the states likely to post sub- $2 gas have three things in common. These are the general drop in oil prices, proximity to large refineries, and low state gas taxes.
The first among these has already begun to have an out-sized influence. Oil has fallen below $66. Just five days ago, the price was nearly $80. In late June, it was close to $100. If oil stays below $70, it could knock $.20 to $.30 off the average price of a regular gallon of gas nationwide by itself, if the evidence of the last month as an indication. Over that period, the price of gas nationwide has dropped from $3.03 to $2.79, according to Gasbuddy.
The eight states were gas prices are likely to fall below $2 are Mississippi, Alabama, Louisiana, Texas, Oklahoma, South Carolina, Missouri, and Tennessee.
Several of these are either on the Gulf of Mexico or states adjacent to ones that are. Each already has gas prices below $2.60. In all but one, the price has continued to fall over the last several days.
Mississippi, Alabama, Texas, and Louisiana are directly on the Gulf of Mexico and close to the large refineries in Texas, which, taken together, are among the biggest block of refineries in the world. Oklahoma and Tennessee border at least one of these four states. So, each has the advantage that among the variable costs of gasoline is the distance it must travel from refineries to retailers.
Finally, state gas tax rates have a profound affect on total gas prices. An illustration of this is that the state with the third highest gas tax is New York where it is $.50. New York also has the third highest gas price in the U.S. at $3.18. The two state where gas prices are higher are distant from supply–Alaska and Hawaii
According to the Tax Foundation, last year, South Carolina had the 47th highest gas tax among all states at $.168. Oklahoma was 46th at $.17. Missouri was 45th at $.173. Mississippi was 44th at $.188. Louisiana was 38th at $.20
Gas prices in eight states should be below $2 within a few months.
Read more: 8 States Where Gas Will Drop Below $2 – 24/7 Wall St. http://247wallst.com/energy-economy/2014/11/29/eight-states-where-gas-will-drop-below-2/1#ixzz3KmsIMgUR
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Still $3.53 here in the forest,
When I filled up a few days ago at the station in Netcong, NJ, regular was $2.55, plus was $2.75, and super was $2.90. The station was Enrite. A friend of mine saw $2.49 for regular in Piscataway.
California Gas Prices
http://www.californiagasprices.com/
. . .
But if you live in rural far west Texas, it’ll be just a bit lower than it is now (about $2.79 a gallon…in El Paso it is about $2.39) with the excuse that it costs a lot to ship it up mountainsides…nonsense…if it goes below $2 a gallon I will be amazed…
It’s $2.36 per gallon in Mckinney, TX the last time I checked. I can’t even believe it has gone down that much. If it goes down any lower, I just know hyperinflation will shoot up right after New Years all at once and the economy will crash as they give their excuse of a gas shortage followed by an unpayable skyrocketing, overinflated heating bill among other things.
You know this is what they will do. They have done it before and they will do it again. The bait has been laid out and the trap is set. Don’t fall in it or you’re dead meat. Be prepared people.
“Gas prices in eight states should be below $2 within a few months.”
Followed by a complete nationwide economic collapse. I can hear the sucking sound even as I type this.
$2.99 is the cheapest I’ve seen here. I don’t need to see the list.
We’re definitely NOT on it.
my state will just raise the taxes on it , so we will never notice the drop in price,, they will say its hurting their road repair budget, you know the one , the budget thats been filling all the pockets of the scumbags in office in my state , and the crooked contractors that are given the work on a silver platter at what ever quality of work they feel like at what ever price they want to charge
amazing isnt it how a million dollar road project gets split up lets see at least 500,000 to some engineering company that does nothing 250,000 to a gub official or agency to oversee the project 200,000 to an independant agency to over see that 100,000 or much more to attorners grant writers independent and gub agents to transfer funds write papers holly crap and not a wheel turned on the road we need more tax more thatll fix it all for funds that were created with the stroke of a pen and budgeted into existence