AAA: Holiday travelers to pay lowest gas prices in almost 7 years

If you’re taking a road trip over the holidays, you’ll be paying the lowest gas prices in almost seven years.

The national average price for a gallon of unleaded gasoline fell below $2 Monday for the first time since March 2009, though it had already dropped past that mark in the Carolinas. Auto group AAA estimates low gas prices have saved Americans more than $115 billion so far this year, or more than $550 per licensed driver.

As of early Tuesday, the U.S. average price of gas climbed a fraction of a cent from Monday to top $2. Prices in the Charlotte area and beyond continue to drop, and South Carolina remains one of the states with the cheapest gas in the nation – luring Charlotteans across the border for inexpensive fuel stops.

Prices per gallon around Charlotte ranged from $1.72 at Costco stations in Matthews and on Tyvola Road to $2.19 in Concord and Gastonia, according to Gasbuddy.com, which records prices submitted by users in the past 36 hours.

Across the state line, the Sam’s Club on Red River Road in Rock Hill is selling gas for as low as $1.56 per gallon.

Rather than sending off a spree of consumer spending, the sector that makes up about two-thirds of the American economy, savings at the gas pump have translated into a spread of smaller expenditures, such as at restaurants, movies and convenience stores, says Mark Vitner, a Charlotte-based senior economist at Wells Fargo Securities.

“Consumer spending hasn’t been growing all that rapidly, so it is stronger than it otherwise had been because of the drop in gasoline prices,” Vitner said.

More than two-thirds of U.S. gas stations are selling gas for under $2 a gallon, according to AAA, which surveys 120,000 stations nationwide to determine average prices.

The savings at the pump will provide added relief to the more than 91 million Americans who plan to drive 50 miles or more during the holiday period, AAA says.

Charlotte resident Jerri Snyder said the low price will help with her 2  1/2 hour drive to the mountains for the holidays. “I can’t imagine that anyone would say it hurts,” said Snyder, who filled her tank Tuesday at an East Boulevard Shell station, where gas was $2.09 a gallon.

The price was $1.96 at a Mint Hill BP station, where retiree James Lanier said he especially appreciates cheaper gas at Christmas.

“It’s good to see it go down,” he said. “It helps the economy, (it) helps all of us.”

Gas prices are so cheap right now because of ample global oil and gas supplies. Gas prices also tend to drop this time of year because demand is relatively lower thanks to people driving less.

Just last week, however, David Carroll, the Charlotte-based head of wealth and investment management at Wells Fargo, noted during an economic outlook event how the “stunning collapse in energy prices” has cut into economic growth because of the negative impact on industries such as steel, transportation, and oil and natural gas production.

The Commerce Department reported Tuesday that the U.S. economy grew at a 2 percent annualized rate in the third quarter, slightly slower than anticipated.

By late winter, AAA says, gas prices could rise 50 cents a gallon or more as refineries conduct maintenance in advance of the busy summer driving season.

This story was originally published December 22, 2015 at 8:08 AM with the headline "AAA: Holiday travelers to pay lowest gas prices in almost 7 years."