National Average Dips below $2 a Gallon in Time for Thanksgiving

Thanksgiving travelers this week will encounter the lowest gas prices since February of 2005.

Dundee, Oregon's price of $1.99 is higher than some Oregon stations selling regular for as low as $1.89. Dundee, Oregon gas station photographed this week. Photo by Tim King Salem-News.com

(PORTLAND, Ore.) - Thanksgiving travelers will see gas prices that haven't been this low since February of 2005, according to Marie Dodds with Oregon AAA. The national average drops 18 cents this week to $1.88, while Oregon's average plummets 19 cents to $2.03.

Dodds says the return of substantially lower gasoline prices provides some economic relief to drivers at a time when it's sorely needed. Oregon's average is $1.12 lower than it was a year ago, while the national average is $1.20 lower." The national average dipped below $2 a gallon last Friday for the first time since March of 2005, and then fell another dime between then and today.

Crude oil today is trading around $51 per barrel, after briefly dropping below $50 per barrel last week. Dodds says crude prices are down about 65% from the record high of $147 per barrel set on July 11 of this year. "Crude oil prices were about $37 per barrel in 2005, the year of Hurricane Katrina."

"It's possible we could see oil prices decline to that level again, with a national average somewhere around $1.50 a gallon, and that may be where it bottoms out. It would take a worsening of the already faltering economy for pump prices to fall much lower."

Despite much lower gas prices, AAA projects a slight drop in the number of Thanksgiving travelers this year. Approximately 41 million Americans will travel 50 miles or more from home this Thanksgiving holiday weekend, a decrease of 1.4 percent from last year’s total of 41.6 million. "This is the first decline in Thanksgiving holiday travel since 2002 and is the fourth consecutive travel holiday this year with a year-to-year decline in the number of travelers," says Dodds.

Salem has the best price in gas with an average cost of $1.993 for a gallon of regular. Portland's average price is very close at $2.000. Eugene area drivers are paying around $2.042 for a gallon of gas and Medford/Ashland residents are seeing an average of $2.215. Vancouver, Washington drivers are paying an average of $2.106 for regular.

The average price of gas is below $2 a gallon in 36 states, up from 17 last week. Oregon's gas prices are 11th highest in the nation for the fourth week in a row. This week no states have gas at or above $3 per gallon. The most expensive gas in the country for the 22nd week in a row is Alaska at $2.87, followed by Hawaii at $2.83, New York at $2.28, District of Columbia at $2.13 and Vermont at $2.12 and. Washington is 8th highest, up from 13th last week, with its statewide average falling 17 cents to $2.04. Missouri has the least expensive gas in the country for the third week in a row at $1.58.

Diesel prices also continue to drop. Oregon's average falls 15 cents this week to $2.86, while the national average loses 15 cents to $2.81. Hawaii has the highest statewide average price for diesel again this week at $4.44, followed by Alaska at $4.00, District of Columbia at $3.54, New York at $3.34, , and Connecticut at $3.20. Oregon's diesel prices are 18th most expensive this week, down from 17th last week. Washington's diesel price is $2.91 which is 14th highest, same as last week. A year ago, the national average for diesel was $3.48 and Oregon's average was $3.58.

Source: Oregon AAA