On Wednesday, an Oklahoma City gas station that has been in business just a month became the first station in the U.S. to sell regular gas for under $2 per gallon since the nosedive in prices started gaining strength six weeks ago.
Cars were three deep lined up at the station by late afternoon. However, shortly afterward another station in the city nearby countered with a price of $1.98 per gallon.
Other competitors nearby started lowering their prices as well and by evening one station over 5 miles away had the best price at $1.95 per gallon.
CEO Jim Griffith of OnCue Marketing said he was not reacting to the tumble in oil prices when he cut 12 cents from his $2.11 per gallon price prior to noon on Wednesday.
Griffith added that the company wanted to give back to its customers, especially since Christmas is approaching.
The average across the country for one gallon of regular gasoline is $2.74. Hawaii has the highest price per gallon of $3.85, while the lowest average is in Missouri at $2.44 per gallon.
A senior analyst in the industry said that 15% of the gas stations in the U.S. are selling gasoline at under $2.50 per gallon. He added that prices would be cut another 20 cents per gallon as stations catch up with the plunging oil prices.
Gasoline has slid in price since OPEC made the decision last week to keep its production at the same level amidst a glut globally of oil that is dragging down international rates by over 39% during the last five months.
Prices at the pump have dropped by close to a dollar since reaching a high for the year in late April.
Word of gasoline for just $1.99 per gallon in Oklahoma City spread via social media very quickly and a line of cars quickly slowed traffic.
OnCue Marketing has convenience stores and service stations across the state of Oklahoma that sell gasoline as well as compressed natural gas.
The plummet of wholesale prices of gasoline might benefit owners of gas stations who could hold off and restock with less expensive gasoline.
Stations usually profit 5% to 7% on each gallon sold.