It's been nearly four years since the national average for a gallon of regular gasoline started with a $2. But on Saturday, we'll drop below the $3 mark.
That’s according to AAA, which measured the national average at a flat $3 (actually $3.003) as of Friday, and forecasts that the run of 1,400+ days of $3+ gasoline will end as of Saturday, November 1, 2014. The last time the price of a gallon of regular gas was under $3 nationally was December 2010.
Gas prices have been dropping roughly 1¢ per day lately, and the national average right now is about 70¢ less than the high for 2014, reached in spring. AAA notes that after the steady autumn decline in prices at the pump, more than 6 out of 10 U.S. gas stations are already selling gasoline starting under the $3 mark.
Like the Dow hitting 17,000, the fact that gas prices are dropping below the $3 milestone may sound impressive, but when viewed clinically and dispassionately, it’s not that big of a deal—a tiny incremental shift that’s part of a larger trend, not some big and sudden change—and it probably shouldn’t cause you to alter your behavior in the slightest. Sure, there’s a subconscious mental bump consumers get when gas prices start with the number $2, and perhaps some dollar stores and discount chains will benefit during the holiday season because low-income consumers will be able to spend a little more freely because the cost of fueling up is down. And yes, retailers and the economy in general will fare better when gas prices are in the $3 vicinity rather than the $4 or $5 range.
Overall, however, the effect on the economy of decreasing gas prices—even gas prices dropping below $3—is expected to be minimal, due in part because few anticipate fuel costs staying at such depressed rates for long. “Paying less than $3.00 for gas is a welcome holiday gift that may not last nearly as long as many would hope,” Bob Darbelnet, CEO of AAA, said via press release. “It is possible that lower gas prices will soon be a faded memory, so enjoy it while you can. The days of paying more than $3.00 per gallon for gas have regrettably not gone away.”