Gasoline Prices Move Back Under $2 in Some Places as Year Ends

Energy

Published: December 23, 2019 6:25 am

Last Updated: December 23, 2019 6:27 am

Gasoline prices are as low as they have been since April. At $2.54 per gallon for regular, the price has been flat for a month. The sharp fall-off of prices toward $2 may well be a signal for early next year, as oil prices continue to drop.

Gas prices are usually lowest in the states near the Gulf of Mexico and the huge refineries close to Houston. Since transportation costs are a major part of the price, the region has a natural advantage. The average price of a gallon of gas in Oklahoma City is $2.14. They are as low as $1.96 in some places.

Gas prices are also particularly low in Mississippi, Texas, Louisiana and Missouri. Each has a statewide average for regular of $2.21. Gas prices around Houston are low as $1.94. In Mississippi, they are as low as $1.97.

After spikes in April and September, the price of a barrel of oil has settled at about $60. Despite news that OPEC and its allies want to cut production, the global supply (and prices) will be helped to the consumer’s advantage by two things. First, shale production in the United States continues to the huge. This is true even though production in some fields has fallen. The demand worldwide has been fairly soft as well. As the global growth of gross domestic product stays low, this is likely to continue.

The Gulf Coast states continue to benefit from several advantages. The most pronounced, after transportation costs, are local and state gas taxes. The U.S. average is about $0.54 a gallon. In Texas, Oklahoma and Mississippi, the number is below $0.39.

Expect gas prices in early 2020 to continue to fall, with more and more places sinking below $2 a gallon.