Illinois Gas Price Drops Below $3.00 for the First Time Since December 2010

Aurora, Ill. (November 14, 2014) – The Illinois average price of gas today dropped below $3.00 per gallon for the first time since Dec.4, 2010, ending its longest streak ever above that price, according to AAA. AAA estimates that lower gas prices are helping U.S. consumers save at least $250 million per day on gasoline compared to early summer when the national average reached $3.68 per gallon.
 
“Consumers are experiencing ‘sticker delight’ as gas prices dropped below $3.00 in much of Illinois,” said Beth Mosher, director of public affairs for AAA Chicago. “Lower gas prices are a boon to the economy just in time for holiday travel and shopping.”
 
AAA anticipates gasoline prices may continue to drop in the near term, but it is possible that prices in many areas will begin to stabilize soon. Unless there are unexpected developments, gasoline should remain relatively inexpensive this winter due to lower demand and typical seasonal trends. By spring, higher gas prices may return due to refinery maintenance, increased demand and a return to summer-blend gasoline.
 
“Paying less than $3.00 for gas is a welcome holiday gift that may not last nearly as long as many would hope,” continued Mosher. “It is possible that lower gas prices will soon be a faded memory, so enjoy it while you can. The days of paying more than $3.00 per gallon for gas have regrettably not gone away.”
 
Gas prices typically decline in the autumn due to decreased driving and the switchover to winter-blend gasoline, but prices have fallen faster than many expected this year due to sharply lower crude oil prices. The price of West Texas Intermediate crude oil has dropped more than $20 per barrel since late June due to strong production and concerns about the global economy, particularly in Europe and Asia. There also are reports that some OPEC nations, such as Saudi Arabia, would be willing to let prices fall to maintain a competitive market share.
 
Crude oil is the main cost associated with gasoline and represents about two-thirds of the price of a gallon of gas. It is estimated that every ten dollar per barrel change in the price of crude oil results in a 25-cent change in the price of a gallon of gasoline.
 
October monthly averages across the region:  
   
 
Fuel prices are posted on-line at www.fuelgaugereport.com, which updates prices daily for unleaded, diesel and E85 blends of fuel.
 
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