Montana posts lowest average gas prices in U.S.

Good news for Montanans for the New Year — Montana has the lowest average gas prices at the pump in the U.S.

The statewide average price per gallon of regular unleaded fuel reached $3.01 on Dec. 31 — a full 31 cents less than the current national average price.

“The Rocky Mountain states have been experiencing lower gas prices than the national average recently,” AAA spokeswoman Kaelyn Kelly said. “In 2013, Montana hit its lowest price of the year of $2.99 per gallon on Jan. 27. It will be interesting to see if the downward trend in prices in the state continues into January like it did last year.”

The national average price per gallon in 2013 was the third highest on record but the lowest since 2010, at $3.49 per gallon.

AAA forecasted that gas prices will likely average slightly less in 2014 as refineries continue to expand production capacity and increasingly rely on North American crude oil. Increased refinery capacity and domestic oil production should provide a supply cushion that helps to limit dramatic price spikes caused by supply and demand.

“Gas prices should average slightly less in 2014 if everything goes as expected, but most drivers may not even notice because the difference could be relatively small,” AAA fuel price analyst Avery Ash said. “Increased refinery capacity and domestic crude oil production should help provide a cushion in case something goes wrong, but there are no guarantees when it comes to gas prices. There will remain an outside chance of paying higher prices due to unexpected global events or significant economic growth.”