The average price of gasoline in San Antonio has fallen to $3.02 this morning, and if prices continue to fall, which appears likely, we will see an average price of below $2 a gallon in San Antonio for the first time since late 2011, 1200 WOAI news reports.
"In San Antonio, drivers are paying $3.02 right now," said Doug Shupe of AAA Texas, which does a weekly report on gasoline prices. "That's down six cents from one week ago, and down 27 cents from one year ago."
In many convenience stores on Friday, a gallon of gas is selling for a gallon of milk, a situation that hasn't occurred for a long time.
It is not unusual to find gas being sold for between $2.85 and $2.90 a gallon in San Antonio today, even at branded major oil company outlets.
Shupe says we are seeing the benefit of two things...a major boost in domestic oil production, and a continued drop in demand for gas, due to everything from higher mileage vehicles to people simply making fewer trips by car.
"Sufficient gas supplies in the market, and a flat demand for gas right now," he said. "We are also seeing the benefits of a shift by refineries to cheaper winter blends for gasoline."
We are also benefitting from lower demand in Asia as the economies in places like China and India continue to stagnate.
Gasoline prices generally fall to their lowest levels of the year in December, so analysts say we have a ways to go before we hit rock bottom.
Another reason why Texas gasoline is cheaper than the national average is the large number of refineries in the state, and the proximity of the Eagle ford fields. The less the oil and gas need to be transported, the cheaper it is.
Most analysts expect the national price of gas to fall below $3 a gallon for the first time in years later this fall.
Another benefit of the booming Eagle Ford and other domestic oil fields is that the U.S. consumers are less at the mercy of the strutting dictators in the Middle East. The current fall in gas prices has accompanied the usual saber rattling from Iran, continued unrest in Syria and Egypt, and growing sectarian violence in Iraq, any one of which would have caused a spike in U.S. gas prices just two or three years ago.