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By Brad Tuttle
December 1, 2014
Justin Sullivan—Getty Images

As of Monday, the national average for a gallon of regular was down to $2.77, according to the AAA Fuel Gauge Report, while the average in at least 10 states was under $2.60. At this time one year ago, the national average was $3.27 per gallon, which at the time was considered reasonable, if not downright cheap.

Wholesale prices for U.S. crude oil are down 38% compared with June, and analysts expect prices to keep dropping in the weeks ahead. The trickle-down effect is that American drivers will be receiving a holiday gift in the form of cheaper and cheaper gas.

How cheap? The national average may hit $2.50, and gas stations in states where pump prices are already low are all but guaranteed to dip into sub-$2 territory.

“We’ll see at least one station in the nation at $2 by Christmas,” Patrick DeHaan, an analyst with the gas price-tracking site GasBuddy told Bloomberg recently. “And that’s not really a prediction at all. That’s more like a certainty.”

“Drivers in southeastern states may see a select few stations selling gas at or below $2 in the coming weeks,” AAA spokesman Josh Carrasco said in a news release.

Drivers in all states can expect increasingly cheaper prices at the pump through the end of the year. And drivers in states where prices are already below average—including Alabama, Arkansas, Mississippi, Missouri, Oklahoma, South Carolina, Tennessee, and Texas—are most likely to see prices drop below the $2 mark.

Read next: There’s an App for the Next Time Your Car Breaks Down

Advertiser Disclosure

The purpose of this disclosure is to explain how we make money without charging you for our content.

Our mission is to help people at any stage of life make smart financial decisions through research, reporting, reviews, recommendations, and tools.

Earning your trust is essential to our success, and we believe transparency is critical to creating that trust. To that end, you should know that many or all of the companies featured here are partners who advertise with us.

Our content is free because our partners pay us a referral fee if you click on links or call any of the phone numbers on our site. If you choose to interact with the content on our site, we will likely receive compensation. If you don't, we will not be compensated. Ultimately the choice is yours.

Opinions are our own and our editors and staff writers are instructed to maintain editorial integrity, but compensation along with in-depth research will determine where, how, and in what order they appear on the page.

To find out more about our editorial process and how we make money, click here.

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