AAA Forecasts Another Year Of Low Gas Prices

Gasoline prices sank below the $2 a gallon average over the New Year’s weekend and the outlook for 2016, according to AAA, is for another year of relatively low fuel prices.

The drop in energy prices has been a significant factor in improved sales and traffic for foodservice operators throughout 2015. The average annual price of a gallon of regular gas in 2015 was $2.40, the lowest since 2009, and the cheapest in the past 10 years. The lower prices have put $115 billion into the U.S. economy, or an average “bonus” of $550 per household.

Most energy sector analysts expect crude oil prices to remain low throughout 2016. Oversupply coupled with the slowing of the Chinese economy have helped create a worldwide oil glut. While crude oil prices are always hard to predict, AAA expects gasoline prices will average between $2.25 and $2.45. Operators should continue to benefit in 2016.