According to a market analysis by AAA, gasoline prices could remain low or further decline in 2016. The company predicts that gas prices could stay steady or drop by 10 cents in the coming weeks.
AAA said that gas prices in 2015 was the second lowest they have been in a decade. It is estimated that the average price of a gallon of regular unleaded gasoline would be between $2.25 and $2.45 a gallon. The average price of a gallon of gasoline was $2.40, and Americans traveled more and saved $540 on gas. It also predicts that crude oil prices will continue to drop due to excessive oil supply like last year.
Though gas prices can vary by season, AAA predicts that the average price would not go above $3 this year. Currently, the surplus of crude oil has led to drastic drop in prices — about $37 a barrel, with prices dropping about 35 percent in 2015. As experts estimate the price of oil to be low this year, even gas prices will continue to be cheaper. However, AAA has indicated the possibility of an increase in oil prices due to political events or changes in oil markets.
The drop in oil prices has not only led to savings, but Americans also flew a record number of miles last year. According to Gas Buddy, the average for a gallon of regular gas is $1.60. At $1.48, Newton has the lowest gas pricing while Kansas ranks 5th in the nation for the lowest gas prices. The most expensive gallon of regular gas was found in Hays, where drivers are paying about $2.75 a gallon. The nationwide average is $1.99 per gallon. In the current trend, gas prices are set to remain low in 2016 also.