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Gas for less than $3 a gallon, at a station near you?

Gasoline prices are the lowest they've been all year, and in some parts of the country they could fall even further before 2014.

By Money Staff Nov 5, 2013 2:06PM

This post comes from Sharon Epperson at partner site CNBC.

 

CNBC on MSN MoneyPrices at the pump are already at the lowest level of the year, with the national average price for gasoline at $3.24 a gallon. But drivers in about 70 percent of the U.S. are feeling even more relief, as local stations post prices below the $3 mark.

 

About 35 states have stations with gasoline below $3 a gallon, representing about 15 percent of stations across the nation, according to AAA.

 

In five states -- Missouri, Oklahoma, Arkansas, Texas and Kansas -- Gasbuddy.com finds the average regular gas price for the state has already dropped below $3 a gallon.

 

Gas prices © Photodisc/SuperStock

AAA predicts 10 states -- mostly in the South Central and Gulf region -- will see the statewide average for pump prices below $3 a gallon by the end of the year. AAA said the national average price of gasoline will likely fall to $3.10 a gallon by year's end, but won't dip below the $3 mark as crude oil prices remain relatively expensive.

 

"There's a chance gasoline will dip below $3 [for the national average] but it will take a considerable rebound in the U.S. dollar or financial collapse to bring the national average below that," said Tom Kloza, chief oil analyst for Gasbuddy.com. "That said, for people who really shop around for gas, in most states they'll be able to find it for less than $3."

 

Gasoline prices have declined as U.S. crude oil prices have plummeted from $110 a barrel at the end of August on concerns about a possible U.S. strike against Syria to below $95 a gallon, the lowest price since June, as domestic crude supplies have risen sharply in recent weeks.

 

Meanwhile, the end of the summer driving season has resulted in an abundant supply of gasoline, with inventories up 7 percent from a year ago, and demand has declined. "There's little demand in the fourth quarter and plenty of supply out there. Fundamentals have finally taken center stage," said trader Anthony Grizanti of GRZ Energy and a CNBC contributor.

 

A seasonal shift in gasoline processing has helped to lower prices at the pump too. "It costs about 10-15 cents less to make the winter-blend of gasoline than the summer blend," said AAA spokesperson Michael Green.

 

As a result of all of these factors, gasoline prices haven't been this cheap since 2010, having fallen 34 cents since Labor Day and 22 cents from a year ago. Even in the high-priced New York metropolitan area, pump prices fallen dramatically after topping the $4 mark a year ago, when Hurricane Sandy damaged local refineries.

 

Local gas prices are about 40-50 cents cheaper in New Jersey, Long Island and New York City than the first weeks of November last year. The state-wide average in New Jersey is $3.14 a gallon and in New York City prices are about $3.63 a gallon on average, according to AAA.

While the national average may not fall below $3 a gallon, many analysts say prices should remain under pressure through the New Year.

 

"Prices probably won't start to rise again until Valentine's Day as we anticipate the spring and summer driving season of 2014. But for now, this market is very well supplied," Grisanti said. Drivers have been paying less than they did a year for gasoline for the last three months and that trend is likely to continue.

 

More from CNBC:

30Comments
Nov 5, 2013 4:19PM
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Wasn't gas $1.50 a gallon a little over a decade ago?
Nov 5, 2013 3:45PM
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$2.98 in some parts of New Jersey.
Nov 5, 2013 3:42PM
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Yet another bullsh*t article from the propaganda-producing media.
Nov 5, 2013 4:26PM
Nov 5, 2013 5:24PM
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Love paying less for gas, but keep this in mind. Take any year, take the price of gas, and add inflation. Gas is much lower than it could fairly be.
Nov 5, 2013 4:32PM
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That is amazing...The stock market price for oil stocks dips and the retail price at the pump Dips and Dips and Dips until the price at the dump is about 1.99 per gallon.........and then the oil stock begins to go up in value as pump price decrease and we are back to 3.99 per gallon....it's a no win situation as long as there is a buck to be made....................

Lou, A Resident from Heaven/The Kingdom of God...where the pump prices are zilch/zero
Nov 5, 2013 6:07PM
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In fairlee vt. where at $3.69 a gallon.  new Hampshire in over $3.49 so who controls the gas price for the states?

Nov 5, 2013 5:20PM
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The real credit for the drop in fuel cost goes to the domestic oil producer, those who keep the refineries on-line & T. Boon Pickens. As you have seen in the news - the Saudies are not happy with the U.S. & if anything goes south in the national theater you can bet it will go up by dimes per day. To bad the drop in fuel cost wont show up on the grocery isle soon. There are people (like you and me) that have been squeezed from both sides and there just isnt anymore to give up to jsut buy gas to get to work with. My kids have a logging business, they have kept it going I dont know how though dealing with Canadian imports, workmans comp, insurance, parts, repairs, shutdowns, the taxman and unreal fuel costs.
Nov 5, 2013 3:48PM
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Here in metro-Denver we are averaging about $3.10 per gallon for gasoline, and if you just buy groceries at either King or Safeway their own fuel stations will give you 10 cents off per-gallon for every $100 worth of groceries, gift cards, and prescriptions that you buy.

Certain Walmart's here also have their Murphy Oil stations where if you have a Walmart credit or debit card you get a 5-cent discount too, plus several gas brands here will give you 10 cents per gallon off if you buy a car wash too.

Just last week I only paid $2.71 per gallon with my 40 cents off at King, and their local station near my house has diesel fuel too!
Nov 5, 2013 4:33PM
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$2.84 in sw Missouri. Ben under $3.00 for several weeks.
Nov 5, 2013 4:47PM
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I got gas for $2.929 a week and a half ago.Try to keep up, Money.
Nov 5, 2013 3:46PM
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I live in MIddlesex county, NJ ... gas has been under $3.00gal for over a week now ... paid $2.97 just the other day ...!!! No doubt Odumbo will be taking credit for this any day now, although he has already publically stated that he has ABSOLUTELY nothing to do with the price of a gallon of gas ...
Nov 5, 2013 5:20PM
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Just the change off the summer blend....... in time for Christmas spending. Nothing new.
Nov 5, 2013 5:29PM
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Henderson, NV gas is still $3.31 a gallon, drove 90 miles to Bullhead City, AZ  and paid $3.07
Nov 6, 2013 1:18PM
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From a registered Democrat.  In 08, we had the best economy on earth, and the lowest unemployment, and when my party took over both the house and Senate, boy did they screw things up.  You are nuts if you think things are better now.
Nov 6, 2013 1:16PM
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From a registered Democrat.  None of the idiots in Washington want to control the price of gas.  First, it brings in millions and billions of dollars in additional taxes to the state and federal governments.  Although it is screwing anyone driving a car, or truck, the ones it hurt most is the people on Social Security, low income and small business.  This can be controlled and if not, that and Obama Care will make this country have another Hitler in 5 years, if we do not have one now.  WAKE UP AMERICA.

Nov 6, 2013 1:11PM
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From a Registered Democrat.  You are paying 3 times in taxes to the state and federal governments because of the high price of gasoline and none of the idiots in Washington is doing anything about it.  Why should they, they are making a lot of money and do not have to worry about gas, you pay their expenses.  It is time we had term limits, do not allow a person over 6 years in any government service.

 

 

 

Nov 6, 2013 1:07PM
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From a registered Democrat.  TAXES HAS BEEN FORCED ON YOU.  Don't you people realize what is going on?  Gas was $1.54 in 08 and then my party took control of the House and Senate, and boy did the price go out of site, to over $4.00 in some states.  This took in Billions of dollars in tax money for states and the federal government.  YOU paid nearly 3 time the taxes you were paying.  Who did this hurt, the low income, the set income and small business.  This alone killed the economy.  Now Obama care and you haven't seen anything yet.  This party is trying to tear this county up, buying up HOMES with your tax dollar,  We will soon have another Hitler if it is not stopped.

Nov 5, 2013 11:43PM
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YEAH THAT'S GOOD NEWS IN THIS OBAMA CLIMATE CHANGE EPA NAZI REGULATIONS

ANTI CHEAP ENERGY ECONOMY! BUT WHEN GAS WAS 2 BUCKS A GALLON AFTER KATRINA

THE LEFT WING MEDIA AND DEMOS WENT CRAZY! FUNNY HOW WHEN IT WAS BUSH 2 BUCKS WAS TOO HIGH THOSE DAMN GREEDY OIL COMPANIES BUT WHEN IT'S OBAMA?

CAN'T WAIT TO HEAR ALL YOU DEMOS IN STATES WHERE ENERGY IS ALREADY TOO HIGH

AND TOO SHORT SUPPLY CAUSE OF YOUR DEMONCRAT CLIMATE CHANGE NUTJOBS

AGENDA THAT IS GONNA MAKE ENERGY MORE EXPENSIVE AND SHORT SUPPLY DURING

THOSE COLD WINTER MONTHS! YOU GET WHAT YOU VOTED FOR MORONS! BRRRR!!!!

Nov 5, 2013 3:32PM
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Time to give Obama credit, he`s earned our respect.
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