by Christopher Freeburn | January 2, 2014 9:06 am
Rising refinery production is likely to send gas prices lower this year.
The AAA predicts that the average price of a gallon of gasoline will fall 5 cents in 2014. Gas prices have the potential to fall to their lowest level since 2010 this year. In 2013, gas prices averaged $3.49 a gallon, down from $3.60 a gallon the year before, Bloomberg notes.
Last year, drivers in South Carolina paid the lowest average gas prices around $3.24 a gallon, while California had the highest average gas price at $3.89 a gallon. During 2013, gas prices sank under $3 a gallon at least briefly in twelve states. In 13 states, gas prices temporarily topped $4 a gallon.
In late December, U.S. gas production hit 9.72 million barrels a day, up 4.3% and the highest daily gas production since 1982. More abundant supplies of domestic crude oil should begin to push gas prices down this year.
The U.S. is now producing the most domestic crude oil in a quarter of a century. In fact, U.S. oil production has reached a level that promises to move the country closer than ever to energy self-sufficiency.
Surging domestic oil production comes even as the government presses automakers to build vehicles that get more miles per gallon.
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