In the summer of 2008 I paid $4.75 per gallon for a fill-up in rural Northern California. I won’t forget that pinnacle gas price anytime soon. It cost me almost $100 that 102 degree summer day to fill the tank of my jeep. I would have NEVER believed anyone who told me that a few years later, the ongoing global oil price war being waged by OPEC would drop the price of gas in the USA back down to less than $2.00 a gallon. That didn’t seem possible at the time.
Yesterday we hit a new low water mark in the “new” gas wars of recent years. The price of gasoline temporarily dipped all the way down to 47 cents a gallon in Michigan as competing gas stations lowered the bar, again and again, vying for customers.
So we all know that the price of gasoline is pegged to the price of crude oil, which has plummeted since 2013 and was trading yesterday at the unheard of price of $28.90 a barrel. The recent plunge in oil prices has created a cascade of falling and downward correcting prices for other commodities, including the precious metals. If you have been squeamish about buying gold or silver bullion, the fortuitous drop in the price of oil has worked in your favor, with silver now at the bargain basement price of about $14 an ounce.That’s a price we most likely won’t see again for decades once gold and silver begin heading north again in about a year and a half.
So what does a gallon of gas now cost in the US? The average gas price as of 1.19.2016 is just $1.89, although prices will vary from state to state. Let’s have a look. Based on this map from http://gasbuddy.com, gasoline prices are the cheapest in the American heartland [ note the green ] and most expensive in New England, California and the coastline of the Pacific Northwest in Washington state. If you’re traveling this winter, download a copy of the map to hopefully save a few bucks as you make your way across the country. Bon voyage, land rovers!