AAA-Iowa reports that the average price for a gallon of gas nationwide is now at a record low of $2.43 a gallon. The average in Iowa dropped 13 cents compared to last week to hit $2.16 a gallon. That’s 30 cents a gallon lower than last year at this time.
AAA-Iowa spokesman Nick Jarmusz says everything has fallen into place to push prices lower, as the oil supply is growing faster than anticipated internationally and domestically, production levels hit the highest level ever recorded, seasonal maintenance is over at the refineries, and seasonal demand has dropped as we move into winter. Jarmusz says you won’t pay the average price at all stations — as the cost to fill up can vary quite a bit across the state.
He says some places will be below that and some may be a little higher depending on where they are in the distribution chain. Jarmusz says the prices should stay low for awhile — but there is one unknown still out there.
“And that’s what OPEC and the Russians decided to do in terms of any production cuts next year,” according the Jarmusz. “If they agree to some level of production cuts, that could definitely slow the decreases, if not completely turning them around. Not that we anticipate the prices going up a whole lot.”
He says it is likely the prices will stay right around where they are now through December.