America’s cheapest gas on Thursday was in Columbus, Ohio, where the price of regular was $1.20 a gallon. At the United Dairy Farmers, 3535 Clime Road Station, to be exact.

The $1.20 price may be due to a price war. The four stations with the lowest gas prices in the United States were in Columbus, as were six of the top eight. The most expensive gas among these eight locations is $1.25 a gallon.

The price is unusually low, compared to the $1.85 national average, according to GasBuddy.

That national average will go lower, probably much lower. Crude oil prices have dropped to $28. A year ago, the price was nearly $65 a barrel.

One main reason for the drop in gasoline prices is the sea of available oil, due in part to a flood from Saudi Arabia, and perhaps to falling demand as the global economy slows.

Oil is not the only factor. Proximity to refineries is also an issue. The average gas price in Louisiana is $1.67. In Oklahoma it is $1.57, and in Texas, $1.55. All are near the huge refineries south of Houston and the Gulf of Mexico, which is dotted by deepwater oil drilling platforms.

Gasoline taxes by state are another factor. The average nationwide is $0.48 per gallon. In Oklahoma it is $0.35. But in Ohio, the number is $0.46, evidence that Columbus is in the midst of a price war.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.