$1.99/Gallon Gasoline Arrives In Oklahoma City

Cameron Aubernon
by Cameron Aubernon

Remember when fuel prices were under $2? Those days are back.

GasBuddy.com says an OnCue convenience store in Oklahoma City dropped its price for a gallon of regular from $2.11 to $1.99 Wednesday, and it likely won’t be the only one. The fuel-price tracking site predicts parts of Spartanburg, S.C., Houston and St. Louis will have $1.99/gallon gas soon.

The national average is supposed to hit $2.55 by Christmas, with the lowest prices around the Gulf Coast. That said, the low price may hint at a bumpy economic road ahead.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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9 of 75 comments
  • Kyree Kyree on Dec 05, 2014

    Indeed, our fuel got very inexpensive. Too bad I can't partake. The disparity between gasoline and diesel is not usually that high, though.

  • John Williams John Williams on Dec 05, 2014

    Enjoy it while you can. I fully expect gas prices to rebound to $3/gal by mid-February, at the latest.

    • See 1 previous
    • Pch101 Pch101 on Dec 06, 2014

      Rising dollar + reduced demand in US + economic slowdown in Europe and Asia = lower oil prices Oil has been overpriced, largely due to QE, and it is returning to equilibrium. Betting on a surge in fuel prices is a poor bet in my estimation. (The national average price of gas is nowhere close to $2, though. As of 12/1, it was $2.78 -- $2 gas at today's prices is a loss leader, not a market price.)

  • Jimbob457 Jimbob457 on Dec 06, 2014

    Boys and girls, the oil boom is over Rover just like back in 1983. This time it was fracking that killed it. Not only did she leave town, she called you a sorry SOB on her way out. Traditional suppliers are screwed. High cost suppliers (including some frackers) are utterly screwed.

  • 28-Cars-Later 28-Cars-Later on Dec 06, 2014

    How much of the new 1.99 is a percentage of ethanol cost alone? I also like how diesel is still 3.39 despite the fact diesel is cheaper to refine...

    • Pch101 Pch101 on Dec 06, 2014

      At $2 per gallon, they're losing money. (Not that this is far from the norm: US gas stations often barely breakeven on the fuel, and make their profits from the convenience store.) The refining costs don't vary for the fuels -- the refinery is set up to crack particular ratios of gas, diesel, jet fuel, etc., and the overhead allocated across the board. The supply and demand component of gasoline comes largely from motor vehicle drivers. The supply and demand component of diesel is more closely related to the business cycle, including transportation and agriculture. Americans are demanding less gasoline than they used to, while the economy is recovering. If we are burning less gasoline but buy more goods because of the recovery, then gas demand will naturally follow a path that is different from diesel. If the Saudis are hoping to impact anything, then I would expect that they are hoping to move the demand curve moreso than attack supply. If lower prices convince Americans to buy more gas guzzlers, then KSA will have scored a victory.