The Auto Writer

Texas is leading the nation with the lowest gas prices, with many pumps now selling regular gasoline for under $2 a gallon. According to GasBuddy.com, drivers in Corpus Christi are saving big bucks at the pump, paying as low as $1.89 at several Valero stations and at a handful of other stations in that area.

Prices have been in a full retreat for well over a month now, thanks to oil prices which have plunged to $64 a barrel from their summer high of $147. Despite OPEC recently meeting to cut production in a bid to stabilize the market, prices continue to fall, suggesting that much of the nation will soon see prices below $2.

Texans aren’t the only ones who are paying less with drivers in Des Moines, Iowa seeing prices slip to as low as $1.97 a gallon. Kansas City, Oklahoma City, Little Rock, Tulsa, and Dayton, OH each have a handful of pumps selling gas below $2, though the citywide averages are above that threshold.

Much Higher National Gas Price

On a national level, the price for regular gasoline is $2.63 a gallon, according to AAA. The automotive organization says that the average price has dropped by $1 a gallon the in the past month, the largest monthly drop ever recorded.

Hawaii and Alaska continue to pay the most for gasoline, with prices around $3.30 a gallon in Honolulu and Anchorage. California has the highest prices in the 48 contiguous states, with prices around $3 per gallon. Most of New York is also paying similar prices.

Bad News Or Good News For Autos?

The auto industry has been hammered for months because of the high prices as people fled trucks and SUVs for smaller cars or sat on the sidelines. However, with end of the year deals already in play and lower gas prices to contend with, SUV and pickup truck sales are now beginning to rebound.

Will pain at the pump return once again next Spring? Probably, but maybe not at the highs we saw last summer — with the entire global economy in a recession, demand is down and prices just may stay down for an extended period of time.