It seems that every day the price of a gallon of regular gasoline moves inexorably closer to $1 a gallon. In Amarillo, Texas, a gallon cost $1.69 Tuesday, a penny less than it did the day before, according to GasBuddy. The honor for the lowest state price for a gallon goes to Missouri, where the average price dropped two cents Tuesday to $1.79. GasBuddy reports that the current U.S. average price is $2.022, the lowest price so far in 2015.
According to AAA, a gallon of regular gasoline cost $2.027 Tuesday, down nearly a penny since Monday and down just over a penny from a week ago. Gas is $0.65 a gallon cheaper now than it was a year ago.
Gasoline prices are driven by four factors: oil prices, proximity to refineries, refinery capacity and state taxes and levies. Oil prices have dropped below $40, recently hitting a low of $36.64 a barrel. The recent decision by Saudi Arabia to continue to keep its oil exports high has almost dissolved the OPEC cartel. This guarantees an oversupply of crude. Slowing national economies in the largest countries, which include China, will lower demand. The cost of producing oil from shale deposits is greater in some cases than what it can be sold for; nonetheless, parts of this industry continue pumping, increasing supply even further
