Gas prices expected to drop to near $2 a gallon

EVERETT — Tumbling gas prices are expected to continue falling and could approach $2 a gallon near the end of the year.

The drop is driven by a mix of factors, including low crude oil prices, falling driver demand and refineries switching to winter-blend gasoline, which is cheaper to produce.

On Tuesday, the average gas price in Snohomish County was $2.83 a gallon. Costco stores had the lowest prices in the county — $2.29 a gallon, according to Gasbuddy.com, a gas-price tracking website.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

“I think a few $1.99s could start popping up” this fall, said Allison Mac, a Los Angeles-based analyst with Gasbuddy.

The state average price for a gallon of regular gasoline was $2.76 Tuesday afternoon, according to the website.

That price likely will drop to between $2 and $2.20 by mid-December and in January, she said.

Gasbuddy’s analysts expect the national average to get as low as $1.90 a gallon. The national average Tuesday afternoon was $2.31, a 2.6-cent decline from the previous day’s average.

Gas prices are considerably lower than 12 months ago, when the average in Snohomish and King counties was nearly $1 higher, according to AAA’s Daily Fuel Gauge Report.

Those savings quickly pile up.

Tom Kloza, chief energy analyst and a co-founder of Oil Price Information Service estimates American drivers are paying $455 million less a day at the pump. The Gaithersburg, Maryland-based company owns Gasbuddy.

Gas prices in Washington haven’t caught up with falling crude oil prices, he said.

“If you’re not Costco, you aren’t rushing to drop your retail price, because you’re basically seeing the same demand as last week,” he said.

After all, retailers “make their money when wholesale prices are dropping faster than prices on the street,” he said.

Analysts expect gas prices to stay down into 2016. The U.S. Energy Information Agency actually forecasts the average price next year to be less than in 2015.

However, many factors influence gas prices. If China’s economy rebounds, Saudi Arabia cuts oil production or a major refinery accident happens, prices will jump.

In any event it’s likely that gasoline prices eventually will rise again, Kloza said. Consumers “are already going back to sloppy behaviors,” such as buying bigger and less-fuel-efficient vehicles.

Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Everett Historic Theater owner Curtis Shriner inside the theater on Tuesday, May 13, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Historic Everett Theatre sale on horizon, future uncertain

With expected new ownership, events for July and August will be canceled. The schedule for the fall and beyond is unclear.

Contributed photo from Snohomish County Public Works
Snohomish County Public Works contractor crews have begun their summer 2016 paving work on 13 miles of roadway, primarily in the Monroe and Stanwood areas. This photo is an example of paving work from a previous summer. A new layer of asphalt is put down over the old.
Snohomish County plans to resurface about 76 miles of roads this summer

EVERETT – As part of its annual road maintenance and preservation program,… Continue reading

City of Everett Engineer Tom Hood, left, and City of Everett Engineer and Project Manager Dan Enrico, right, talks about the current Edgewater Bridge demolition on Friday, May 9, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
How do you get rid of a bridge? Everett engineers can explain.

Workers began dismantling the old Edgewater Bridge on May 2. The process could take one to two months, city engineers said.

Smoke from the Bolt Creek fire silhouettes a mountain ridge and trees just outside of Index on Sept. 12, 2022. (Olivia Vanni / The Herald)
County will host two wildfire-preparedness meetings in May

Meetings will allow community members to learn wildfire mitigation strategies and connect with a variety of local and state agencies.

Helion's 6th fusion prototype, Trenta, on display on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Helion celebrates smoother path to fusion energy site approval

Helion CEO applauds legislation signed by Gov. Bob Ferguson expected to streamline site selection process.

Vehicles travel along Mukilteo Speedway on Sunday, April 21, 2024, in Mukilteo, Washington. (Ryan Berry / The Herald)
Mukilteo cameras go live to curb speeding on Speedway

Starting Friday, an automated traffic camera system will cover four blocks of Mukilteo Speedway. A 30-day warning period is in place.

Carli Brockman lets her daughter Carli, 2, help push her ballot into the ballot drop box on the Snohomish County Campus on Tuesday, Nov. 5, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Here’s who filed for the primary election in Snohomish County

Positions with three or more candidates will go to voters Aug. 5 to determine final contenders for the Nov. 4 general election.

Sound Transit approves contract to build Bothell bus facility

The 365,000-square-foot facility will be the heart of the agency’s new Stride bus rapid transit system, set to open in 2028.

One dead in Everett crash involving motorcycle and two vehicles

Police shut down the 10300 block of Evergreen Way in both directions during the multi-vehicle collision investigation.

Katie Wallace, left, checks people into the first flight from Paine Field to Honolulu on Friday, Nov. 17, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Executive order makes way for Paine Field expansion planning

Expansion would be a long-range project estimated to cost around $300 million.

A person pauses to look at an art piece during the Schack Art Center’s 50th anniversary celebration on Thursday, Oct. 10, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Everett to seek Creative District designation

The city hopes to grow jobs in the creative sector and access new grant funds through the state label.

Former Herald writer Melissa Slager’s new book was 14-year project

The 520-page historical novel “Contests of Strength” covers the 1700 earthquake and tsunami on Makah lands.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.