I saw a lot of $1.79 gas this week around Phoenix. It should be even lower than that. According to my calculations, prorating the historical ratio of a price of a barrel of oil to the price of gas, we should be seeing gas at $1.25 or so. Just fifteen months ago a barrel of oil was $115.00,,,,this week it hit a low of $35 before rebounding to $37 this morning. OPEC met last week and the Middle East fiefdoms refused to cut back on their oil pumping. On Monday Iran said they'd start pumping another 10 million barrels into the pipeline....do desperate are they for some hard cash.
In addition to glut of oil already in the pipeline our domestic shale producers are going "lean and mean" trying to stay in business while prices continue to decline. (I'd gladly pay a little more for gas to keep our domestic producers in business; that way we'd could quit relying on foreign oil imports, with some of those petrodollars paying for radical extremist groups).
Maybe a happy medium would be $1.50 gas with most of that coming from our own domestic producers. Wouldn't make the Saudis happy, or Iran, or socialist Venezuela...but "f*ck em...they've never much cared about us either.