The Reynolds Center Horizontal Logo In Color

Two Minute Tips

Gasoline drops below $2 a gallon in some places

December 8, 2014

Share this article:

Changes in the auto industry are impacting businesses well beyond Detroit. Consider your local gas station. (Image by StockSnap via Pixabay, CCO Creative Commons)
Changes in the auto industry are impacting businesses well beyond Detroit. For starters, look at local gas stations. (Image by StockSnap via Pixabay, CCO Creative Commons)
Gas Price Chart

You know you are paying less for gasoline this fall. But fuel has gotten really cheap in some parts of the country.

The Associated Press reports that several filling stations in Oklahoma City and Texas are selling unleaded gasoline for less than $2 a gallon. ‘‘When I first saw it, I thought it was a misprint,’’ Marcus Hendricks, a student who lives in south Oklahoma City, told the AP.

He was interviewed at the OnCue Express in southeast Oklahoma City, where the price was $1.99 per gallon for gas with a 10 percent blend of ethanol. ‘‘There were so many cars it looked they were giving something away for free. They practically are.’’

On Friday, the national average for unleaded gasoline was $2.71 a gallon, almost a dollar cheaper than the peak price of $3.70 in June. It’s the cheapest that gasoline has been since 2010. And prices could fall another 10 to 20 cents per gallon by the end of December, according to AAA Oklahoma.

Of course, gas isn’t cheap everywhere. The average price is still more than $3 a gallon in New York, Alaska and Oklahoma. However, a global glut of crude oil is probably going to keep prices relatively low through the first of the year, if not longer.

Lower gasoline prices have a ripple effect throughout the economy. One place the impact is felt immediately is the auto industry. In November, U.S. auto sales reached a seasonally adjusted selling rate of 17.2 million vehicles, the highest the industry has experienced in a decade.

Automakers are now setting the stage for a huge December sales boom, according to Automotive News.

Another area that might see a boost from lower gasoline prices is travel and tourism. The national AAA hasn’t issued its holiday forecast just yet. Travel last year was nearly flat with 2012, with 95.4 million people hitting the road.

Despite the crowds you see at airports, about 90 percent of all Christmas and New Year’s travelers go by car. But if it only costs $25 or so to fill up a tank, that last-minute trip sounds a lot more attractive.


AAA Newsroom

AccuWeather Holiday Forecast

Gas Buddy Historic Gas Prices


  • Micheline Maynard

    Micheline is a contributing columnist at the Washington Post concentrating on business and culture. She has written about flooding in Detroit, tainted water in Benton Harbor, nationwide shortages of restaurant staff, and vaccine hesitancy.

More Like This...

Here’s why oil is part of your beat

You might think that oil is the province of reporters covering the energy industry and its companies. Not at all. No matter what area you

Get ready for more pain at the pump

Thanks to a steady economy and low inflation, many drivers may have shrugged off the cost of fueling up over the Memorial Day weekend. The

Gas prices are plummeting

If you’ve filled up your car lately, you’ve probably noticed that gasoline prices have fallen significantly. Now, the American Automobile Association says they’re about to

Two Minute Tips

Sign up now.
Get one Tuesday.

Every Tuesday we send out a quick-read email with tips for business journalism.

Subscribers also get access to the Tip archive.


Get Two Minute Tips For Business Journalism Delivered To Your Email Every Tuesday

Two Minute Tips

Every Tuesday we send out a quick-read email with tips for business journalism. Sign up now and get one Tuesday.