Price at the Pump Drops as Domestic Production Surges

The Wall Street Journal is reporting that gas prices are at a 33-month low “amid a boom in domestic drilling.”

Tuesday’s national average price of $3.18 a gallon—26 cents below a year ago—was the lowest since Feb. 22, 2011, when it was $3.17, according to AAA, which tracks daily gas prices. The automobile club predicted that the national average could fall close to $3 a gallon by year’s end because of abundant supplies, declining seasonal demand and lower crude-oil prices.

Moreover, consumers in several states are seeing prices drop below the all-important $3.00 mark.

Drivers in six states were paying an average of less than $3 Tuesday, including Texas, Louisiana and Missouri, the state with the cheapest gasoline, just $2.81. Drivers in 11 other states were enjoying prices of $3.10 or less, including Iowa, Indiana, Minnesota and Ohio.

From a national standpoint, the average price per gallon hasn’t fallen below $3 a gallon since December 2010, according to the Journal.

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