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No, that hangover's not blurring your vision. Gasoline IS cheap today.

a gas pump
Steve Carmody
/
Michigan Radio
Gasoline prices are expected to take another big leap this week in Michigan.

Gas prices dropped below $2.00 a gallon on the first day of the New Year. 

AAA Michigan says March of 2009 is the last time gas prices were this low.

The current statewide average is $1.97 per gallon.  

The decline is due to a very large drop in crude oil costs; AAA says crude oil represents about two-thirds of the cost of gasoline.

There's a glut of crude oil on the market, after Saudi Arabia decided to keep pumping out the oil despite lower global demand and increased production in countries like the U.S.

Saudi Arabia is taking the action to protect its global market share.

Low gasoline costs at the pump could continue for quite awhile.  

Saudi Arabia has no immediate plans to reduce production.

Tracy Samilton covers energy and transportation, including the auto industry and the business response to climate change for Michigan Public. She began her career at Michigan Public as an intern, where she was promptly “bitten by the radio bug,” and never recovered.