When Will Ohio's Gas Prices Drop Below $2?

Lakewood residents have another reason to celebrate this holiday season as the Ohio state average for gasoline continues to decrease. But when will it fall below $2?

An Oncue Express gas station in Oklahoma became the first station to sell fuel below $2, pricing each gallon at $1.99 for the first time since July 30, 2010, according to Bloomberg.com.

According to NBC news, oil prices have fallen 34 percent since June, a new five-year low for the country. The national average price of gas is at $2.70, with Ohio at $2.69 per gallon according to GasBuddy.com. These have been the lowest prices since October 5, 2010.

According to AAA, Americans are estimated to save upwards of $200 million per day on gasoline compared to last year’s holiday season.

“Gas prices have fallen at a remarkable pace that would have been unthinkable just a few months ago,” AAA spokesman Avery Ash stated on the site’s blog. “Lower gas prices represent real doorbuster savings as everyone begins their holiday shopping.”

Time Magazine’s Money section calculated that gas prices have dropped 69 days in a row and speculate that the national average may hit as low as $2.50 by Christmas, the longest streak of consecutive price declines since autumn of 2008. This sudden and sharp decline is significantly due to lower crude oil costs.

Alongside the drop in foreign prices, the AAA Fuel Gauge Report states that domestic oil production has increased by more than 70 percent since 2008, paving the way for the United States to be the world’s largest oil producer. This increase in production has helped to wean global demand.

AAA expects gasoline to drop another 15-20 cents per gallon in the short term as gas station prices catch up with the steep declines in the cost of both crude oil and wholesale fuel. This means continued savings into the December holiday as well as into the New Year.

Images: AAA Fuel Report