The American Automobile Association, or AAA as you are probably more familiar with, has forecasted that the price of gas will continue to fall as we approach the autumn months.
In a recent article on their website, AAA cites that currently, gas prices in the United States are at their lowest point for this time of year since 2004.
Gas prices have dropped to the lowest levels for this time of year since 2004: http://t.co/XQniyXJCzq.
— AAA (@AAAnews) August 24, 2015
The reason for this?
AAA says that gas prices have recently dropped due to the fact that crude oil has seen a steep decline in price per barrel. These gas prices, according to AAA, will continue to fall as companies switch over to winter-blend gasoline and the fact that demand for it in general has been declining..
As of Tuesday, August 25, the National Average for Gas is listed at $2.59. Which is down $0.08 from last week and down $0.14 from a month ago.
Prices are predicted to keep falling, so much so to the point that travelers in most states can expect to see prices below the $2 mark for the first time in over six years.
Crude oil has seen its overall price decline because of record production by the United States and the depreciation of the Chinese economy, which had a negative effect on the Stock Exchange this past Monday. With almost 65 percent of the cost of a gallon of gas being directly attributed to the cost of crude oil, it’s no wonder that gas prices have been and will continue to fall along with oil prices.
The most recent United States Census shows that nearly 86 percent of Americans commute using their own private vehicle to get to work. Meaning that a reduction in gas prices will be almost similar to receiving a raise at work. The less costs that are expended at the pumps, the more that families will have for saving and spending.
Already-down gas prices have been helping to fuel travel this year and have undoubtedly played a role in helping families take a number of road trips and shorter, weekend trips this summer. AAA projected that 37.2 million people would take to the roads during Memorial Day of 2015, which is the highest the number has been since 2005.
Although travelers generally travel less by volume in the fall and winter months, one of the largest traveling times of the year is during the holiday season. With the price of fuel expected to fall below $2, it is likely that more people will travel during the Thanksgiving and Christmas holidays.
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