Gas prices are likely to remain low in 2016. AAA estimates the annual average price of gas in 2016 is likely to end up between $2.25 and $2.45 per gallon, which would be cheaper or at least comparable to this year’s average of $2.40 per gallon.
“Motorists enjoyed some of the cheapest gas prices in years thanks to a global overabundance in oil supplies which helped keep the price of oil and gasoline production costs low,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “Gas prices remained at their lowest level for the year-end holidays since the 2008-09 holiday season. Increased demand from holiday travelers temporarily froze prices in place, but gas could get even cheaper in January as demand tapers off.”
Energy prices are forecast to remain low next year, according to the U.S. Energy Information Administration. The EIA projects the price of WTI oil to average $50.89 next year ($49.08 in 2015), and a gallon of gasoline to average $2.36 – 7 cents lower than last year’s average. According to EIA data, gasoline will average $2.06 in the early winter months (Jan 1-Feb 29), $2.38 in the spring (Mar 1 – May 31), $2.55 in the summer (June 1 – Aug 31), $2.38 in the fall (Sept 1 – Nov 30), and $2.24 for the month of December.
Gas prices in Tennessee this week are averaging $1.74 per gallon with the national price standing at $1.99. In Coffee County the low price in Manchester is $1.65 and in Tullahoma the low price per gallon in $1.69.
Gas Prices Headed Lower
