Drivers throughout the Hudson Valley have been treated to a welcome present during the holiday season: lower gas prices.
According to the American Automobile Association (AAA), the national average price for a gallon of gas has dipped to $3.04 as of Monday, marking one of the lowest levels during the holiday season since the COVID-19 pandemic. The national average for a gallon of gas is two cents less than a month ago and four cents less than a year ago.
Here in the Hudson Valley, gas prices have dipped under $2.90 at many locations. Gus Scacco, the CEO and Chief Investment Officer of Hudson Valley Investment Advisors, Inc., attributed the dip in prices to “strong production worldwide.”
“However, China, one of the world’s largest energy consumers, is experiencing an economic slowdown that is limiting demand,” Scacco added. Scacco also noted that the decline of the war in the Middle East, which historically has added a premium to energy prices, has lowered costs at the pump.
According to GasBuddy, an app that tracks gas prices across the country, gas prices in more than 30 states are below $3, providing some relief for millions of holiday travelers. Asked if gas prices will continue to dip after the holidays, Scacco said:
“We believe gas prices have a chance to continue to decline. The only thing to keep in mind is that U.S. energy producers may cap production if oil prices go below $50 per barrel as they are focusing on cash returns which may force them to dial back production levels.”
