Gas prices forecast to drop to $2 a gallon this fall in parts of the South

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(AP/WNCN) – The average U.S. price of regular-grade gasoline has dropped 8 cents per gallon over the past two weeks to $2.66.

Industry analyst Trilby Lundberg of the Lundberg Survey said Sunday that an abundant supply and low crude oil costs contributed to the decrease at the pump.

The price is 25 cents lower than what it was a year ago.

Reports this past week also indicated that without a major hurricane hitting the Southeastern United States, gas prices could fall to $2 per gallon later this year.

Already, the lowest average price in the U.S. is $2.07 in the Baton Rouge area of Louisana.

Auto club AAA said in a note Thursday that the South and Southeast can expect to find “savings at the pump this fall.”

In a forecast summary for the region, AAA said “potentially even under $2/gallon by year-end, barring any major hurricanes.”

The U.S. Energy Information Administration projects prices in parts the south to retail at $2.24 per gallon — including taxes — by just after Thanksgiving.

Also this week, the Houston Chronicle spoke with GasBuddy fuels analyst Patrick DeHaan, said that about 15% of all gas stations in the U.S. will have prices below $2 this fall.

Right now, DeHaan said only about 100 of the nation’s 150,000 gas stations have regular unleaded below $2 per gallon this week.

Currently, the highest average price in the nation is $3.57 a gallon in Honolulu.

The average price of diesel is down 3 cents, to $3.01 per gallon.

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