Energy agency says gasoline will average under $2 in 2016

gas, gas station

Gasoline under $2 a gallon? For a whole year?

That’s the government’s latest forecast.

The U.S. Energy Information Administration said Tuesday in its monthly short-term energy outlook that regular gasoline will average $1.98 a gallon nationwide in 2016.

If the forecast is right, it will be the first time since 2004 that U.S. drivers have paid a full-year average of under $2 a gallon.

The pump savings are a direct result of the 70 percent collapse in crude oil prices since mid-2014.

The EIA expects benchmark U.S. crude to average $37.59 a barrel this year, down from $48.67 last year. International crude will average $37.52, down from $52.32 a barrel in 2015, according to the agency.

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