A gallon of regular now costs $2.64 on average, according to AAA. In some places, it’sfallen below $2 a gallon.
The dramatic drop in the price at the pump is giving a big boost to the U.S. economy. It’s akin to a tax cut or stimulus program, economists say.
Every penny that gas prices decline puts about a billion dollars into Americans’ pockets, according to Stephen Stanley, Chief Economist of Amherst Pierpont.
Gas prices were 62 cents higher this time last year, so the U.S. is basically getting a $62 billion stimulus injection. To put it another way, each household is saving roughly $500. That’s money people can use to buy other things or to save.