Michigan First US State To Welcome Gas Price At $0.77, Gas Tax Hike Likely
Gas prices have dropped to 77 cents in two stations of Michigan City. The prices have continued to drop across the state, but gas stations in a particular region, at a price which is believed to be the lowest across the US.
The reduced gas price is due to a price war. However, two stations near by to the $0.77 stations, are selling gas at a regular price of $0.95 a gallon. Michigan appears as the first US state to welcome back gas prices below $1 per gallon.
The $0.77 gas is available at Bacon and Bridge Market. The Marathon station at 9286 West Lake City Road and the Citgo station at 9469 West Lake City Road are selling gas at 95 cent per gallon, reports 24/7 WallSt. quoting Gasbuddy.
Statewide gas prices have been decreased by $0.13 compared to the previous week. The average price for self- service regular unleaded gasoline has been reported to exist at $1.74 a gallon on Sunday.
This price is $0.19 lower compared to that at the same period of last year. Statewide gas prices at below $1.75 have been witnessed last during January, 2009, reports WXYZ Detroit quoting AAA Michigan.
Patrick DeHann, senior petoleum analyst for the fuel tracking site Gasuddy, has reported to witness fuelprice as low as $0.47 a gallon in Sunday on January 17, 2016. Terming the situation as an outcome of so called 'gas war', he predicts that these stations will probably re-raise the gas prices back over $1/ gallon, reports ValleyCentral.
The average price for a regular gallon of gas has dropped below $1.70 in several states and expects to drop further. A gallon of gas is sold for $1.57 at Oklahoma, $1.63 at Missouri, $1.66 at Alabama, South Carolina, Arkansas, $1.67 at Kansas, while $1.68 at Tennessee, Texas and Missouri.
States far from refineries, have been witnessing the highest gas price across the US. Thus a gallon of gas is priced for $2.65 at Huwaii and $2.41 at Alaska. The other factors influencing gas prices are state and Federal taxes and levies.
The national average tax per gallon of gas is $0.48. Many US states are considering proposals for imposing a hike on gas taxes which apparently pose no threat. The gas tax may witness a rise with further fall in crude oil prices.
Two gas stations of Michigan are selling gas at $0.77 for the first time as a consequence of gas war. Thus Michigan becomes the first US state to enjoy gas at below $1. The federal gas tax is around $0.48 on an average. Since, the analysts forecast for further price deepening, so the US states are considering for a hike in gas tax to accommodate funds for communication developments. With deep wounds for falling oil prices, US states are currently off budget to carry on such activities.