Gas Prices Now Lower Than One Year Ago

After hitting a high of $4.11 last seen on July 17th, gasoline prices are now lower than they were one year ago today.

According to the American Automobile Association’s, the national average for a gallon of regular is $2.78, compared to $2.82 on October 24, 2007. That represents a drop of over 30% since its peak.

The last time that happened was on September 1, 2007 when the price was also $2.78, a penny cheaper than the previous year.

Last year on this date, the price of a barrel of oil was $87, while it has been trading below $65 a barrel today, despite an announcement from OPEC that it will be cutting production by 1.5 million barrels a day.

Changes to pump prices traditionally lag behind those of oil, but could eventually tumble as low as $2 a gallon if oil falls to $50 a barrel, as some analysts suspect it will.

The Associated Press contributed to this report.