Gas prices are falling in the United States, and any day, drivers could pay less at the pumps than a year ago. The national average is also expected to drop below $3 in the coming weeks.
The price of a gallon of gasoline has fallen about 32 cents over the past month, from $3.77 to the current national average of $3.45, the AAA driving club said in a statement. new report.
“The increase in supply and the constant demand for gasoline have contributed to lower prices at the pump. As demand remains weak and inventory rises, drivers will likely continue to see pump prices fall through next week,” the report said.
That means gas price could soon be cheaper than 12 months ago. The national average was $3.38 this time last year.
Patrick De Haan, head of oil analysis at price comparison app GasBuddy, agrees that prices will fall further, possibly even below $3 nationwide before the end of the year. .
“It’s entirely possible that the national average gasoline price could fall below $3 a gallon by Christmas, which would be a huge unwrapping gift for motorists after a dizzying year at the pumps,” he said. writes De Haan in a report earlier this week.
The national average for a gallon of gas was about $3.30 end of 2021. Prices skyrocketed in early 2022 after Russia invaded Ukrainefinally reaching a record high in June just above $5.
Where gas prices are the cheapest
Americans generally drive less this time of year as cooler temperatures set in, reducing demand for gasoline.
Oil prices have fallen due to a variety of global market factors, including fears that shutdowns in China will dampen demand and recent news that the Biden administration is allowing Chevron to export crude oil from Venezuela. However, oil prices could fluctuate in the coming days as OPEC+ met on Sunday to review its production levels.
On Friday, oil prices were trading at around $81 a barrel, down from around $89 a month ago, according to the West Texas Intermediate measure. Crude oil prices are responsible for 54% of what a gallon of gasoline costs drivers at the pump.
Medium gas prices are under $3 now in a handful of states, all of which have only fallen below that level in the past 15 days. Gas is cheapest in Texas ($2.82), followed by Oklahoma ($2.94), Arkansas ($2.96), Mississippi ($2.97), and Georgia ($2.99). For about 10 months, from February to November, the average gallon cost over $3 in all 50 states.
Gasoline prices even fell below $5 in California last week, dropping 23 cents to $4.86.
That leaves Hawaii as the only state where gas is consistently above $5. The average gallon costs $5.18 on the islands.
Prices remain above $4 in four other western states. After Hawaii and California, the most expensive state averages are Nevada ($4.56), Washington ($4.39), Oregon ($4.27), and Alaska ($4.23) .
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