U.S. Fuel Prices Fall To Record Low for the Year

December 07, 2018 at 1:06 AM

The average price of regular-grade gasoline in the U.S. fell to $2.44 per gallon this week, its lowest this year, AAA reports.

Prices have plunged more than 50 cents since the end of May and are now 5 cents per gallon cheaper than at this time last year. Rates could end the month as low as $2.40 per gallon, according to AAA.

Averages currently range from a high of $3.62 per gallon in Hawaii to a low of $2.01 in Missouri. The national average marks the first time prices have dropped below year-earlier levels in 18 months.

Analysts attribute the decline to a global glut of petroleum caused by record-high output in the U.S. and greater-than-expected output by Iran. U.S. producers pumped an all-time high 11.7 million barrels of crude per day in November, according to the Energy Information Administration. At the same time, U.S. waivers of sanctions on several of Iran’s biggest customers added to the glut.