AAA (American Automobile Association) has announced that they have projected gas prices will remain low and will go even lower in 2016 as compared to 2015 average gas prices.
AAA, a company that holds the compilation for gas price details around the country, is confident that this year motorists will be paying less for every gallon of gasoline purchased.
In 2016, the average cost of a regular gasoline will be between $2.25 and $2.45 per gallon.
AAA has also made projections that the national average will either remain steady or drop by 10 cents in the next few weeks. They are confident that the gas prices will not go beyond $3.00 this year even though gas prices do vary.
What made the drop in the prices? The current worldwide crude oil surplus has also dropped. This ingredient is needed to produce gas. In 2015 alone, the crude oil prices have dropped 35%.
Oil experts say that the crude oil costs will remain low which means that gasoline prices will directly remain low as well.
The average gas price in 2015 was $2.40.
One must also consider that the decrease in price was due to the increase of efficiency in cars and that the United States has doubled its oil production count in the last few years.
However confident they are, AAA did send a disclaimer that prices may change due to political events or changes in the oil market.
If predictions hold true, the average household with two drivers may be able to save more than $1,000 in 2016 than it did in the last two years. CNN Money has measured that American drivers can save $540 this year because of the low gas price projections.
The over-all impact to the economy becaus of lower gas prices can be tremendous as Americans can now save money or spend their savings on other things, as reports have indicated.
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