The average price of U.S. gasoline has dropped 10 percent this week and at $3.54 it is at its lowest price since 2008. The lower price is attributed to a lower average price of U.S. oil.
The average price is down 20.8 cents from Oct. 19 according to Reuters when drivers were forced to pay over $3.74 for gas.
In 2008, gas dropped over 21.9 cents, but gas was also an average $1.60 in 2008 so the decrease wasn't as publicized.
The low price change comes as some surprise due to the fact that Hurricane Sandy impacted so many areas in the U.S. The gas shortage in those states however caused the demand to actually drop in places like the Mid-Atlantic and the Northeast region according to CNN.
The lack of gas played a huge role in the decline especially in locations like New York and New Jersey as the demand wasn't there since people were avoiding their cars if they could. Many gas stations were out of gas completely as well as those who absolutely needed to drive were forced to search for open stations.
The average price of a barrel of oil was $87 on the New York Mercantile Exchange. Enjoy the low price while you can though, because most experts don't expect it to drop much lower.
"Our expectations are for crude to come a little lower, and that would be reflected in gas prices," said Phil Thompson, manager of market analytics at Mobius Risk Group, a firm that advises energy producers.
Thomson does think that the price of gas could fall below $3, but for it to go much lower something significant would need to happen over in Europe in regards to their debt.
The highest prices for gas recorded in a Nov. survey by Reuters were in San Francisco at $4.05 a gallon. Drivers in Memphis, TN were paying the least at $3.11 per gallon according to the same survey.
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