Feb 10, 2016 09:10 PM EST

$1 Gas Is Closer Than Ever, Gasoline And Crude Oil Prices Show


$1 sounds like a good amount and it may become a reality soon. We've seen it and closely watched day by day - the drop of gasoline prices. But while consumers are celebrating, energy companies are suffering.

Currently, the fall in average regular unleaded gasoline is priced at $2 per gallon and it has helped steady the inflation, reports indicated.

Soon, gas prices are going to dip lower to about $1 per gallon at some gasoline stations especially in the Midwest. Which makes unleaded fuel cheap like buying a pack of chewing gum.

"The cheapest gasoline prices in over 12 years are showing up in some lucky states in the heart of the nation, with previously unthinkable 99-cent gasoline becoming a strong possibility as wholesale gas prices plunge amidst growing supply,"Patrick DeHaan, an analyst, explains.

 For consumers, it's the most awesome news ever especially for lower income segments being that transportation and gas consumption occupies a huge amount of their budget.

Right now, the nationwide average is at $1.72 per gallon as of 1:15 p.m. Which is about 45 cents lower than a year ago.

American consumers are partying at the sound of a buck for a gallon but oil companies are hurting because of the global surplus in oil production.

What does that mean? Because of economic sluggishness in Europe, China and the U.S., there's a ton of oil surplus which means there's lesser demand right now. And lower demand could exacerbate low prices. Compounding matters is that the Organization of the Petroleum Exporting Countries (OPEC) increased production in January by 280,000 barrels per day to 32.6 million, as reported by the International Energy Agency.

In stock market news, stocks of Chevron, BP and Exxon Mobil slipped 4%, 3.3% and 1.8%, respectively, in afternoon trading Tuesday.

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