BALTIMORE (WJZ) — Gas prices are dropping fast here in Maryland and across the country. Some places are already seeing prices below $2, just in time for the holiday season.
Tracey Leong explains what’s driving the steep plunge at the pump.
AAA Mid-Atlantic predicts Americans could be paying under $2 by Christmas–the lowest in six years.
Prices are falling at the pump, just in time for the holiday travel.
“I drive probably 600 miles a week–minimally–so it means a lot to me,” said Brian Robinson, driver.
Record production of U.S. oil has dropped the price to $40 a barrel.
“The consumer’s benefiting because we have this glut of oil,” said Mark Johnson, Loyola University Maryland finance professor.
More than 40 million drivers across the country are expected to hit the road for a Thanksgiving getaway.
As prices continue to slip lower, Americans could save nearly $7 billion on gas from now until Christmas, averaging out to about $40 a driver.
Another factor contributing to dropping gas prices is lower demand–people typically drive less during the colder months. And that extra cash is being pumped back into the economy.
“Traveling, dinner with friends, buying something for my husband,” said Anastasia McCusker, driver.
“More money in my pocket, more money to spend on my family,” said Melvin Numbers, driver.
Economists are also predicting cheaper gas will bring job growth.
“It could signal that our economy is on its way to continual recovery,” said Johnson.
Nearly half the country is already paying under $2, including parts of Maryland.
The average price for a gallon of regular in Maryland is $2.12.