Gas Price Drops Below $2.10 in Bright Spot for US Economy

"One of the items in the consumer price index that has regularly fallen for almost two years is the price of fuel, particularly gasoline. Recently, the average price of a gallon of regular gas fell to under $2.10 in Oklahoma. For most of the nation, the decline has accelerated. With the price of oil dropping, that trend is not at an end point. During a period when "affordability" is an issue for American consumers, the price of gas is one of the few bright spots."

"The current annual cost of gas for an average American household is $2,500. The topline number is that this is 3.2% of the average household expense. The U.S. median household income at almost $84,000 and the bite of taxes probably put that percentage higher. For households with income below the U.S. median, the figure approaches 6%. Since consumer spending is 70% of U.S. gross domestic product, discretionary income is a large part of the health of America's economy."

Fuel prices, especially gasoline, have declined for nearly two years, with average pump prices falling below $2.10 per gallon in Oklahoma and sharper drops nationwide. An average household spends about $2,500 annually on gas, roughly 3.2% of household expenses, with lower-income households facing nearly 6% of their budgets. Lower gasoline costs free up discretionary income, important because consumer spending comprises about 70% of GDP. Holiday averages fell to about $2.79 per gallon, producing substantial savings. States closest to Gulf supplies and with low gas taxes report the lowest prices. Benchmark WTI crude dropped from over $80 to about $57 a barrel.

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