Gas prices have dropped by almost half over the past year in the U.S., according to a new study from the Institute for Energy Research (IER) at the University of Chicago.
The study found that in the three months ending July 30, the average cost of a gallon of gasoline fell from $3.60 to $3, about two cents cheaper than it was in April.
But while the price drop has been modest, the decline was not without its own risks.
“We are at the lowest price point we have seen in the past 10 years,” IER’s Brian Ehrlich said in a statement.
“This is a moment for all consumers to make a decision: Is gas a good investment?
Or is it too expensive?”
Gasoline prices can fluctuate widely depending on how long the country has been in a recession.
The last time the average price fell below $3 was January 2007, when prices were $3 a gallon.
That month, the U,S.
Treasury Department warned the price was “unlikely to remain below $4 per gallon” until 2022, according to The Wall Street Journal.
Gas prices are still expected to drop further as the economy improves and more drilling occurs.
A gallon of gas was $3 earlier this month.