The U.K. motoring organization RAC — similar to AAA in the U.S. — said on Thursday that if the price of oil continues to drop, "we may get to a bizarre time when a liter of fuel is cheaper than a liter of some bottled waters."
Specifically, RAC said that if oil falls to $10 a barrel this year as boldly predicted by Standard Chartered this week, the price of gasoline could drop 20 percent from its December average (which, at around $6 a gallon in the U.K., was already the lowest price in years).
Of course, gas prices tend to be higher in the U.K. due to higher taxes. But the U.S. Energy Information Administration's most recent forecast predicted that average prices in the U.S. will fall 16 percent year over year in 2016, reaching a seven-year low of $1.90 per gallon in February before rising again in the spring.
So will Americans get to experience the "bizarre time" of paying more for bottled water than for gasoline? It depends how you look at it.
According to wholesale prices released by the Beverage Marketing Corporation, if gasoline falls to that $1.90 this year, it won't be enough. It would take prices below $1.22 to crack the average wholesale price of a gallon of bottled water. That could happen in some states if prices fall further than the EIA expects.