The US is racing towards a sub $1 per gallon gas (approx. Rs 66 for 3.78 litres of petrol), returning vehicle fuel to a status as the least expensive liquid in the country — cheaper than milk, orange juice, beer, or bottled water. Two gas stations in Michigan were reported selling gas at less than 50 cents a gallon in a promotional event this week. But, while that might be a marketing anomaly, gas prices are averaging south of $1.50 per gallon (approx. Rs 26/liter) in much of the country. Following the US rapprochement with Iran, crude prices are expected to plunge even further than the $25 a barrel it is now hovering around. Some experts are talking of oil prices crashing to below $10 a barrel, a level unseen since November 2001. That will almost certainly take gas prices below $1 a gallon, a retail price last seen in the late 1990s.
Unleaded petrol has fallen below £1 per litre for the first time since 2009, with diesel also falling below the same level last week. Average prices across the UK remain at 102.5ppl for petrol and 103.2ppl for diesel.
The US Energy Information Administration said its gasoline stockpiles grew by another 8.4m barrels in the week to January 8, higher than analyst expectations of 1.6m. “US crude oil inventories remain near levels not seen for this time of year in at least the last 80 years,” said the EIA, who expect inventory growth to continue for the next two years.