Gasoline prices continue to creep closer to a national average of $2 for a gallon of regular unleaded, a level not seen since March 2009, and one that many thought they might not see again.
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Oil prices account for about two-thirds of the price of gas, and U.S. benchmark crude remained below $50 a barrel Thursday, which is less than half what it was in June. According to AAA, the travel services organization, crude prices should remain low for all of 2015 because global supply is outstripping demand.
AAA warns that pump prices could increase this spring when refineries switch to pricier summer gasoline blends and seasonal demand picks up.
"While increased seasonal demand and maintenance at refineries may result in a typical 30-50-cent increase in pump prices this spring, a major global price recovery is unlikely to be on the horizon, absent any major market disruptions or geopolitical events," AAA said in a release.
The AAA Daily Fuel Gauge Report pegged the national average for regular gas at $2.04 a gallon Thursday, just 4 cents less than a week ago but a whopping $1.24 less than a year ago. That's the lowest price in nearly six years.
Hawaii, where the statewide average for regular unleaded gasoline was $3.30 a gallon, was the only state with pump prices averaging more than $3 a gallon. Alaska was the only other state with a price higher than $2.50 a gallon, with an average of $2.79. Gas was averaging less than $2 in 27 states, with the lowest in Kansas and Texas, $1.84; Oklahoma, $1.81; and Missouri, $1.76.
The national average for diesel fuel was $2.87 a gallon, 99 cents less than a year ago, and premium gas was averaging $2.45 a gallon, $1.18 less than a year ago, according to AAA.
The national average for regular unleaded has fallen 119 days in a row, often only by fractions of a penny, but the 17-week slide adds up to a decline of $1.30 per gallon since Sept. 25.
The steep decline has prompted some, including President Obama in his State of the Union address, to project that the average American household will save $750 this year because of lower gas prices. That figure would seem hard to quantify given the broad range of pump prices across the country, wide differences in fuel economy among vehicles and the varied driving routines of millions of motorists.
Motorists can project their own savings with the fuel-cost calculator on FuelEconomy.gov, the EPA's website for fuel economy information. The calculator allows adjustments for annual driving mileage, average fuel economy and fuel prices to generate different cost scenarios.
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