Gas prices may fall have fallen under $2 per gallon

Less than a week ago, we were talking about how gas prices may fall to two dollars a gallon by the end of the month. Now there’s a report that with the help of today’s plummenting oil prices on the market, some states are already seeing below that two dollar mark.

Here in Houston, its official: we’ve reached $1.99 per gallon. The cheap gas can be found at the same place we mentioned last week – the Citgo at Beltway 8 and Spencer Highway (they really want you to visit Pasadena). Most of these price wars are driven by local competition, of course. In Pasadena, that Citgo has a competitor nearby selling gas for $2.03. In Pearland (near 288 and FM 518), a Shell station is offering $2.05 a gallon, while their neighbor RaceWay one ups them at $2.04 a gallon (ah, the free market at work). The average price in Houston is $2.23.

This downward price trend can change at any moment, especially if we run into supply problems overseas. But for now, we’ll take what we can get, and be happy that we waited until the fall to take our road trip.

UPDATE: Houstonist reader Brad suggested an alternate website, hosted by MSN, to look up gas prices. This site reports on prices received directly from the gas station and is searchable by zip code.