Gasoline Falls to Two-Year Low

The average price of a gallon of regular unleaded fell 3 cents to $2.24 on Jan. 7, and has reached its lowest level since February 2017, as falling oil demand continues to push prices lower, according to AAA.

For the week ending Dec. 28, gasoline demand reached 8.6 million barrels per day, despite record motor vehicle travel. Demand was down nearly 900,000 barrels. The current price has declined for 12 consecutive weeks, which has pushed the national average to a level that's 20 cents cheaper than last month and 25 cents cheaper than a year ago.

"As the global crude market continues to be oversupplied, oil prices are dropping, continuing last week’s trend," said Jeanette Casselano, AAA spokesperson. "This is good news for motorists filling up at the pump."

States with the least expensive gasoline include Missouri ($1.82), Oklahoma ($1.90), Arkansas ($1.91), Texas ($1.91), Alabama ($1.91), South Carolina ($1.91), Mississippi ($1.91), Louisiana ($1.93), Kansas ($1.93), and Ohio ($1.95).

States with the most year-over-year price declines include Michigan (55 cents), Illinois (49 cents), Ohio (47 cents), Indiana (47 cents), Iowa (47 cents), Wisconsin (46 cents), Nebraska (41 cents), Missouri (41 cents), Kentucky (39 cents), and Delaware (36 cents).

Meanwhile, the average price of a gallon of diesel fell 3.5 cents to $3.013, which is 1.7 cents higher than a year ago.