Report: Gas Prices to Average $2 a Gallon in 2009
A U.S. government report released today, forecasted a rise in the national average price of gasoline but that it wouldn’t rise too much above $2 per gallon in 2009.
Gas prices slipped to $1.71 a gallon, the lowest it’s been since March 2004, according to the motorist group AAA. The national survey of credit card swipes has recorded its 82nd consecutive day of falling gas prices.
The only states that were still selling gas above an average of $2 per gallon, were Alaska ($2.705), Hawaii ($2.567) and New York ($2.068).
Missouri had the cheapest gas at $1.511, according to AAA.
Diesel prices dropped too, falling 2.7 cents to a national average of $2.64 a gallon. Since hitting a record high of $4.84 a gallon in July, diesel has slipped more than $2 a gallon.
The price for E85, an 85% ethanol blend made primarily from corn, rose 0.5 cents to $1.56 a gallon.
Weakening demand, caused by the slowing economy, has caused refiners to scale back on imports and suspend work at some of their refineries.
The Energy Information Administration predicted that the demand for crude oil will drop by 450,000 barrels per day in 2009.