The falling price of oil was big news for the second half of 2014, and it is still making news in 2015.
Oil prices have fallen from the June 2014 high of over $105 to under $50. Markets are unable to predict the future price of oil. Major producer, Saudi Arabia, announced it will increase oil production which will continue to lower the price of oil.
With lower costs of oil, the cost of gasoline and diesel go down as well.
This time last year, the average price of gasoline was $3.40, now it is $2.23. According to the U.S. Energy Information Administration, 368.51 million gallons of gasoline are being consumed daily (2013 statistics). At last years price, that adds up to $8.76 billion dollars a week.
With 2015’s drastically reduced gas prices, the weekly total is $5.75 billion or about $3 billion a week saved. With 320 million people living in the U.S. the savings are about $9 per person per week.