Arizona trending toward average gas price below $3 per gallon, expert says

Dec 13, 2023, 8:32 AM | Updated: Dec 29, 2023, 10:50 am

A sign shows gas prices at a Florida gas station, with regular costing $2.89 per gallon, plus at $3...

Arizona's average gas price could fall below $3, an industry expert said Wednesday, Dec. 13, 2023. (Photo by Joe Raedle/Getty Images)

(Photo by Joe Raedle/Getty Images)

PHOENIX – Gas prices continue to drop across Arizona, following the national trend, and could fall below $3 a gallon in the near future, a fuel industry expert said Wednesday.

“I think your average price may go under $3 there, and you might even see the occasional place selling gasoline for $2.75,” Tom Kloza, global head of energy analysis at price reporting agency Oil Price Information Service, told KTAR News 92.3 FM.

The cost of gas is typically lower during the winter months, but this year’s prices are significantly cheaper than a year ago, providing a gift for holiday travelers.

More than 115 million travelers are expected to take trips longer than 50 miles over Christmas and New Year’s, a 1.8% increase from last year and the second most since AAA started tracking holiday travel in 2000.

How much have gas prices fallen in Arizona?

As of Wednesday morning, the average price for a gallon of regular gas in Arizona was $3.289, according to AAA, about 46 cents cheaper than a month earlier.

Twenty-five states were averaging under $3 per gallon on Wednesday. Texas was the cheapest at $2.59 and Hawaii topped the list at $4.703.

Gas already has dipped below $3 in Tucson, where the average was $2.901.

Metro Phoenix was under the state average at $3.263, more than 50 cents cheaper than a month ago. The Valley decline is expected to continue.

“I think you’re headed to Tucson numbers pretty soon,” Kloza said.

Nationally, the average gas price was at $3.121, down more than 24 cents in the last month.

At this time last year, the average gas price was $3.245 nationally, $3.679 statewide and $3.766 in metro Phoenix.

How long will lower gas prices last?

Kloza said he expects another month or two of relief at the pumps.

“Everything points toward lower prices,” he said. “Now, I do think crude oil and gasoline prices are going to find a recovery toward the end of the first quarter, but the next 30, 45, maybe even 60 days — clear sailing and cheap prices and a nice tailwind for consumer spending.”

KTAR News 92.3 FM’s Jim Cross contributed to this report.

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Arizona trending toward average gas price below $3 per gallon, expert says