OAKLAND, Calif. (KTVU) - Some Midwestern states are seeing the cost of gas dip to its lowest in more than 12 years, and industry analysts say it may not be long before those state see prices plunge to $0.99 a gallon.
The consumer group GasBuddy says that nine states are currently seeing the lowest average gas prices since early 2004, as wholesale gas prices drop amid growing supply.
Those nine states are: Oklahoma ($1.37), Indiana ($1.45), Kansas ($1.46), Ohio ($1.47), Michigan ($1.49), Minnesota ($1.52), Wisconsin ($1.54), Illinois ($1.57) and North Dakota ($1.63).
GasBuddy says oil refiners are offering bargain basement prices to get rid of their supply of winter-spec gasoline, as they prepare for a pending shift to cleaner burning fuel.
“Wholesale gasoline prices in the Midwest have lost more than half of their value since the beginning of the year and prices at the pump haven't fully reflected that yet," according to Patrick DeHaan, senior petroleum analyst for GasBuddy.
"Incredible as it sounds, we wouldn't be shocked to see a few stations in these states as low as 99 cents a gallon,” said DeHaan.
Here in the Bay Area, while 99 cent gasoline may be a far reach, the cost to fuel up your car has been shrinking for months, and we did find some gas stations with sub $2 a gallon prices.
At the Safeway Gas in Pleasant Hill, customers have been lining up to take advantage of the bargain deal. On Monday the cash price hit $1.97 a gallon.
"It's wonderful but I think it's probably on the short list as the price of gasoline fluctuates up and down a bit. But, it's nice while we have it and enjoy it," said customer Jeremy Tacdol.
We looked around for other stations offering some of the lowest prices. Costco in Concord, comes in at $1.98 a gallon.
Also in Concord, we found two Arco stations that came in at $1.99.
In fact, GasBuddy.com found 14 Bay Area locations where regular unleaded fell below two bucks a gallon. Most of them were in Contra Costa County.