American drivers are experiencing their biggest break on gas prices in two decades, with new data showing motorists will spend less than 2% of their disposable income on fuel this year, new data shows.
The Energy Information Administration reports this marks the smallest share since 2005, excluding the pandemic year of 2020 when many Americans weren't driving for work. The average has been 2.4% over the past decade.
Gas prices have dropped every year since 2022, while personal income has grown by 4% annually. The Energy Information Administration forecasts regular gas will average $3.10 per gallon this year, down from $3.30 last year.
Experts say prices could drop even more next year to $2.90 per gallon.
The price drop is driven by increased oil supply from OPEC-plus members and other producers. The International Energy Agency says global oil supply could rise by 2.7 million barrels per day this year.
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