The average price of gasoline next year will be $2.94 a gallon as crude oil prices continue to stay low, the Energy Information Administration (EIA) predicted.
It will be the first year with gas prices lower than $3 a gallon since 2010, when prices averaged $2.835 a gallon.
Next year’s average gas price will be 45 cents lower than this year’s average, EIA said in a Wednesday report.
Gas prices fellow below $3 a gallon in EIA’s weekly surveys Nov. 3 for the first time in nearly four years.
“U.S. gasoline prices are expected to sink further below the $3 a gallon threshold through the end of this year,” EIA Administrator Adam Sieminski said in a statement.
Sieminski attributed the lower gas prices to a “sharp” decline in the price of crude oil, the feedstock for gasoline. Rising production and weak demand for petroleum products are causing the oil price decreases, he said.
EIA’s forecast included good news for oil as well. After averaging $95 a barrel in the West Texas Intermediate crude benchmark this year, oil will drop to a $77.75 average throughout 2015, the agency predicted.
Diesel and heating oil will both be cheaper next year as well.
But natural gas will see a slight uptick in price to $11.06 per thousand cubic feet, from $11.05.
Electricity’s price will also grow, reaching 12.7 cents per kilowatt-hour, up from this year’s 12.48 cents.