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
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)
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)
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)
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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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