Reports from the American Automobile Association and GasBuddy show that gas was selling Monday in Michigan for $1.80 a gallon. The next states on the list with the lowest average gas prices are Oklahoma which sells is gasoline by nearly a cent more and Ohio ($1.82 per gallon).
In the U.S., the average retail price of gas is now $2.03.
Nevertheless, GasBuddy experts recommend to fuel up as soon as possible as the situation may not last long. For the next day, experts forecast that prices will slightly rise, and Michigan won’t have the lowest prices in the nation.
Patrick DeHaan, senior investigator at GasBuddy, explained that the situation in Michigan occurs only ‘when the stars align’ because the state is not located in the South where there is a solid crude oil industry, nor it can be compared with Oklahoma. DeHaan added that seeing Michigan where it now stands it is a rare phenomenon that happens only one to two years and it is prone to change.
Experts also estimate that gas prices would continue to drop through holidays. Experts expected gas prices in Michigan to fall this month by up to 48 cents. They say that the The Wolverine State hasn’t seen such gas prices since 2009.
Gasbuddy analysts also said that averages in 2001 were even higher than they are today.
According to reports, in the metropolitan area of Detroit you can buy gas for $1.79 a gallon. Toledo, Grand Rapids, Flint and Kalamazoo are the U.S. cities with the cheapest gas prices in the nation, ranging from $1.67 to $1.76 a gallon.
Analysts believe that the sudden drop in prices has various reasons including overproduction of crude oil since Saudi Arabia and Russia didn’t agree to lower output, Chinese economic growth missing expectations, and U.S. inventories that recently hit record levels.
Moreover, some refineries are now repaired and fully functional, while the Street was resilient to prices despite the recent Paris terrorist attacks.
Experts expect gas prices in Michigan to hit $2 by mid-February. DeHaan believes that after Valentine’s Day prices would be higher than $2 per gallon.
Other states with incredibly cheap gas are Missouri ($1.80 per gallon) and South Carolina ($1.81), while the most expensive states are Alaska ($2.33), Washington ($2.45) and Nevada ($2.53).
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