The average price of gas in the US is below $2 a gallon for the first time in 7 years

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While plummeting oil prices have been contributing to the market's putrid start to 2016, they are also saving Americans huge amounts at the pump.

According to the US Energy Information Agency, the average national price for a gallon of gas has fallen below $2 for the first time in 7 years.

"The U.S. average retail regular gasoline price had last approached, but not gone below, the $2.00 mark in early 2015," said the EIA in its daily online update.

"Falling gasoline prices are a result of falling crude oil prices and the seasonal slowdown in gasoline demand."

The last reading below $2 from the EIA came on March 23, 2009. The current mark is $1.996 per gallon.

RELATED: U.S. gas prices continue to decline

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U.S. gas prices continue to decline
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The average price of gas in the US is below $2 a gallon for the first time in 7 years
Photo by: Dennis Van Tine/STAR MAX/IPx 1/17/16 Gas Prices Tumble Toward $1.00 Iran sanctions have been lifted which will wash the world with more oil. By some estimates, the country can export 500,000 barrels a day. The increase in global supply begins just as the lowest U.S. gas prices for a gallon of regular hover above $1.30 in some parts of the country. The current national average is $1.90. As crude collapses toward $25, gas prices are on their way down, again.
Gas prices are displayed at an Exxon gas station in Woodbridge, Virginia, January 5, 2016. Oil prices fell further January 5 as the crude supply glut overshadowed a diplomatic row between key producers Saudi Arabia and Iran as fuel prices in the US have fallen below $2 per gallon. AFP PHOTO / SAUL LOEB / AFP / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
Photo by: Dennis Van Tine/STAR MAX/IPx 1/11/16 The price of crude oil Monday plummeted another 5% to $31.41 a barrel Monday based on WTI Crude Oil. That's the commodity's lowest closing price since hitting $30.73 a barrel on Dec. 5, 2003, according to Bloomberg data. Talk about a brutal implosion that keeps raging. Oil prices are down 16%, just this year. That's coming off a brutal 2015 when oil prices dropped 30%. Oil prices have been falling in a historical collapse. Oil prices are now down a staggering 79% from the 20-year high of $145.29 notched on July 3, 2008, according to Bloomberg data.
In this Wednesday, Nov. 25, 2015, photo, Cornelio Bonilla pumps gas at Best Food Mart gas station in Gainesville Ga. The price of oil continues to fall, extending a slide that has already gone further and lasted longer than most thought, and probing depths not seen since 2003. (AP Photo/Kevin Liles)
MILL VALLEY, CA - SEPTEMBER 14: A customer at an Arco gas station prepares to pump gas into his truck on September 14, 2015 in Mill Valley, California. The average price of a gallon of regular unleaded gasoline dropped 27 cents in the past three weeks to a national average of $2.44. (Photo by Justin Sullivan/Getty Images)
In this Thursday, July 16, 2015 photo, a customer re-fuels her car at a Costco in Robinson Township, Pa. (AP Photo/Gene J. Puskar)
WOODBRIDGE, NJ - AUGUST 25: A gas attendant at a 19 Petroleum gas station pumps gas on August 25, 2015 in Woodbridge, New Jersey. Some places in New Jersey are seeing prices under two dollars as the price of gasoline continues to fall. (Photo by Yvonne Hemsey/Getty Images)
Motorist purchase gas at a station that dropped the unleaded fuel price to $1.99 per gallon, Wednesday, Aug. 26, 2015, in San Antonio. The price of oil fell back below $39 a barrel after a U.S. government report showed an unexpected decline in demand for gasoline last week. (AP Photo/Eric Gay)
In this May 8, 2015 photo, vehicles drive past a gas station in Andover, Mass. Even after the typical springtime run-up, the average price for gallon of regular gasoline should top out around $2.60, experts say. (AP Photo/Elise Amendola)
A customer fuels his car at a Mobil gas station off Route 3 south, heading toward Cape Cod at the start of Mother's Day weekend, Friday, May 8, 2015, in Pembroke, Mass. With more money in their pockets thanks to lower gas prices and an improved job market, AAA expects more than 37 million Americans to travel for Memorial Day, the most since 2005. (AP Photo/Stephan Savoia)
In this May 6, 2015 photo, attendant James Lewis pumps gas at a station in Portland, Ore. Even after the typical springtime run-up, the average price for gallon of regular gasoline should top out around $2.60, experts say. (AP Photo/Don Ryan)
In this Monday, April 6, 2015 photo, cars pass by a gas station in Charlotte, N.C. Drivers will see the lowest summer gasoline prices in about 6 years, according to an Energy Department report released Tuesday. (AP Photo/Chuck Burton)
In this April 6, 2015 photo, Lucy Perez, of Charlotte, N.C., pumps gas at a station in Matthews, N.C. A slew of global economic and geopolitical factors are working to pummel the price of oil and set up U.S. drivers for very low gasoline prices later this year. (AP Photo/Chuck Burton)
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According to the post, the West Coast is the only region of the country where gas is still above $2, it sits at an average of $2.63 per gallon. The EIA explained the higher prices are not atypical.

"Gasoline prices on the West Coast tend to be higher than elsewhere in the country because of the region's relative isolation from other gasoline markets and higher state taxes," said the Agency. "Additionally, gasoline supply chains on the West Coast are adjusting to several refinery outages that occurred in 2015, which tightened gasoline supplies and increased prices."

Prices may go even lower as gas prices are usually on a delay from crude oil prices since it takes some time to refine oil. And these prices may stick around since many analysts project that oil prices aren't going up any time soon.

The question then becomes if Americans decide to spend or save the money, especially as fears that American spending is stagnating. So far since gas prices began dropping there hasn't been a surge in spending, except perhaps in auto sales.

Additionally, the EIA predicts that gas will bottom out at $1.90 in February before averaging $2.03 per gallon for all of 2016.

Screen Shot 2016 01 14 at 10.08.59 AMReuters

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