Could Gas Drop Below $2 in Maine?
Gas prices continue to plummet across the country and they recently dropped below $3 per gallon for the first time in Maine in almost four years. If you're like me you keep wondering where it will end. Could we actually go below $2 per gallon? Experts say it could happen in some places.
As of this writing, AAA reports the average price of regular gas in Maine is $2.90 a gallon. That's still a decent amount above the national average of $2.74. However, according to 24/7 Wall St., there are eight states that could drop below $2 a gallon as early as the beginning of 2015.
The price of gas depends on three factors: The overall drop in oil prices, how close a state is to a large refinery and how much the state charges in tax. So taking those factors into consideration, the states that could go below $2 a gallon are Mississippi, Alabama, Louisiana, Texas, Oklahoma, South Carolina, Missouri, and Tennessee.
Figures doesn't it? The combined federal and state tax on gasoline in Maine is 48.4 cents a gallon, 30 cents of which the state of Maine collects. Believe it or not that's below average so that's not the big factor for us. Notice all those states are on or near the Gulf of Mexico where a lot of US refineries are located.
So we probably will never go back below $2 a gallon here in Maine, but prices are predicted to continue to drop before we bottom out. Let's enjoy it while we can. At least we're not in Alaska where they're paying $3.60 a gallon! Yikes!
Where's the cheapest gas in Maine right now without any special discounts? According to gasbuddy.com, it's at Circle K on Route 1 in Scarborough. Where are you finding the cheapest gas right now and what's the price? Let us know in the comments below or on Facebook and Twitter.