2019 Rings in Cheapest New Year Gas Prices Since 2016

January 3, 2019 - The New Year has ushered in the cheapest national gas price average in three years. To boot, at $2.25 today’s national average is even one cent cheaper than on January 1 and trends indicate that pump prices will likely remain cheap for at least the first half of the month.

Today, 29 state gas price averages are at or below the national average of $2.25 with Missouri touting the cheapest at $1.83. Hawaii ($3.34) carries the most expensive average.

“With OPEC production cuts slated to take effect this week, analysts will closely be watching the price of oil,” said Marilyn Buskohl, AAA spokesperson. “Significant movement toward higher market prices would mean cheaper gas prices could be in the rearview mirror. However, AAA expects to see minimal volatility at the start of the cartel’s production cuts.”

The end of 2018 drove WTI crude oil prices to as low as $44/bbl, which is a steep $31 drop from the high of $77/bbl seen during June. 

Quick Stats 

• The nation’s top 10 least expensive markets are: Missouri ($1.83), Oklahoma ($1.92), Arkansas ($1.92), Texas ($1.93), South Carolina ($1.93), Ohio ($1.93), Alabama ($1.93), Mississippi ($1.93), Louisiana ($1.94) and Kansas ($1.95).  
• The nation's top 10 largest yearly decreases are: Michigan (-60 cents), Indiana (-53 cents), Ohio (-53 cents), Illinois (-49 cents), Iowa (-44 cents), Wisconsin (-44 cents), Kentucky (-43 cents), Nebraska (-39 cents), Missouri (-38 cents) and Delaware (-34 cents).

Great Lakes and Central

During the past 10 days, gas prices have dropped by at least a dime in four Great Lakes and Central states: Indiana (-15 cents), Ohio (-14 cents), Illinois (-11 cents) and Kentucky (-10 cents). With a nickel decline, North Dakota ($2.23) has seen the smallest drop during the 10-day period.

As gas prices decline, gasoline inventories in the Midwest region jumped for the fifth straight week, according to the Energy Information Administration (EIA). Total stocks for the week ending on December 21 total 53 million bbl, the highest level of stocks for the region since early September.

Oil market dynamics

At the close of Wednesday’s formal trading session on the NYMEX, WTI increased $1.13 to settle at $46.54. Oil prices mostly fell last week, as market observers continue to believe that the global crude market is over-supplied. Moreover, new concerns are growing of a potential economic slowdown in 2019 that could lead to a decline in global demand for crude. However, recent price gains in the market underscore how volatile the market is now, which could lead crude prices higher if global supply tightens amid robust demand for crude. For now, new reports indicate that the U.S., Russia and Iraq, the second largest producer in the Organization of the Petroleum Exporting Countries (OPEC), saw crude production and export increases in the final months of 2018, contributing to the falling price of crude.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.