Mike Smith Chrysler Jeep Dodge

Price of Gas is Down Just in Time for Summer

The average price of gasoline has dropped below its lowest level of 2016 and is the cheapest since George W. Bush was president, according to GasBuddy the online fuel price data provider. At Mike Smith Chrysler Jeep Dodge, we are happy to share this news with our customers in Beaumont, TX, because it means that you can afford to drive to more destinations this summer!

Right now, gas costs an average of $2.35 a gallon in the U.S. and is the cheapest is has been since way back in 2005, when the national average was way down at $2.11 per gallon.

There are presently 21 states throughout the country with lower averages than 12 months ago and the numbers in some states are staggering--Ohio (26 cents lower), Illinois (.25), Indiana (.20), Kentucky (.16) and Michigan (.13).

The experts are surprised, but obviously summer vacationers are loving some significant savings . “At the start of the year, I would have bet against you if you'd have told me that gas prices this summer could be lower than in 2016,”  said Patrick DeHaan, GasBuddy senior petroleum analyst. “With OPEC's production cut back in November, such a prediction seemed unattainable, but the resiliency of U.S. shale production has indeed shocked all of us.”

While gas is going down in some states, however, it is going up in others, due to refinery issues on the West Coast. Hawaii is at the top of the list at 54 cents higher, followed by Nevada (.34), Alaska (.32), California (.31) and Arizona (.21).

But, if you live in those states, don't fret quite yet because good news is on the way in a big way. With oil prices plummeting some 5% in June, there will likely be lower gasoline prices coming for much of the country, according to DeHaan at GasBuddy.

Based on these numbers, many major banks like Goldman Sachs have begun slashing their oil price forecasts for the remainder of 2017 and next, doubting an OPEC deal to cut back on production can rebalance markets. JPMorgan recently slashed its 2018 forecast for West Texas Intermediate crude by $11 to $42, according to Oilprice.com. JPMorgan reported that U.S. crude output is predicted to keep growing for several quarters because of lower break-even costs and higher investment.

So, why not take advantage of these low gas prices and maybe go on a driving vacation this summer? Your family (and your wallet) will thank you!

Sources: GasBuddy, CNN and Oilprice.com