Gas prices still dropping

Average retail gasoline prices in Kentucky have fallen 5.2 cents per gallon in the past week, averaging $1.85 a gallon Sunday, according to GasBuddy’s daily survey of 2,623 gas outlets in Kentucky. “Despite the expected seasonal increase, the national average price of gas may not rise above $3 per gallon in 2016 because oil should remain abundant and relatively low-cost”, read the AAA report.

“Drivers across the country are celebrating the historic return of cheaper gas prices”, said Marshall Doney, AAA’s President and CEO, in a news release.

“A global oversupply of oil has led to the lowest gas prices for the year-end holidays since 2008”, said Mark Jenkins, spokesman, AAA – The Auto Club Group. That figure still trails the national average of $2 a gallon and is well behind neighboring Warren County, N.J., at $1.77. The U.S. average fell to $1.99 Monday.

As you drive by the Holiday gas station at the intersection of Reserve St. and South Ave., you may notice a pleasant surprise on the Holiday station sign.

Idaho’s pump prices, which have been higher than the USA average since mid-March, have dropped in recent months but are still higher than the US mark.

While those kinds of prices are keeping more money in people’s pockets, they also will contribute to a record-number of travelers who hit the roads over the Christmas and New Year’s holidays.

Despite the expected uptick in holiday travel this week, DeHaan says it just doesn’t pose enough of a demand hike to tip the prices in the opposite direction. In contrast, a family of average income spends about 2 percent to 3 percent of their income to heat their homes.

Gas prices already are much cheaper than $2 per gallon in most parts of the country.

This year, prices are down because of an oversupply of oil worldwide.