Your Holiday Gift: Lower Gas Prices

You probablt use your car a lot and the recent drops in gas prices may equate to personal and business savings. That’s a gift this holiday season that’s likely to stick around well into the new year.

The average price of a gallon of gasoline in the U.S. has dropped 25 cents in the past two weeks, reaching its lowest level in more than five and a half years, according to the Lundberg survey.

Prices for regular-grade gas averaged $2.47 a gallon as of last Friday, down 25 cents from Dec. 5, according to the survey. In many areas, gas has fallen below $2.

Overall, gas prices have fallen more than $1.25 a gallon since their peak in May. Industry analyst Trilby Lundberg says that prices at the pump will likely continue to fall.

The U.S. Department of Energy recently released its predictions for the price of gasoline for 2015, estimating that gas prices will likely drop 35 cents to an average of $2.60 a gallon. That would be the lowest full-year average since 2009.

Source: “U.S. Gas Prices Fall to Lowest Since May 2009: Lundberg Survey,” Reuters (Dec. 21, 2014)