Gasoline prices are decreasing in 11 states, with the average price per gallon now below $3. This decline is attributed to lower seasonal demand and the use of cheaper winter-grade gas. According to data from AAA, drivers in states close to the Gulf Coast’s oil production and refineries are experiencing average pump prices just under $3 per gallon. These states include Alabama, Arkansas, Georgia, Kentucky, Louisiana, Mississippi, Missouri, Oklahoma, South Carolina, Tennessee, and Texas. Andy Lipow, the president of Lipow Oil Associates, explained that these states have lower excise taxes on gasoline and are located near refining centers, reducing distribution costs.
In contrast, the national average for gasoline is $3.36 per gallon, compared to $3.78 one year ago. Even California, known for its high gas prices, has seen a decline to $5.07 per gallon, a decrease of $0.60 from a month ago.
Gasoline demand has been struggling in recent weeks due to both seasonal factors and potential economic headwinds, according to Patrick De Haan, the head of petroleum analysis at GasBuddy. The Energy Information Administration predicts that gasoline consumption will decrease next year as remote work continues, fuel efficiency improves, and inflation remains high.
The agency’s latest energy outlook report suggests that high gasoline prices and persistent inflation may affect consumer budgets and reduce discretionary driving. However, drivers can expect relief at the pump for the remainder of the year as long as there are no sudden spikes in oil prices or major refinery outages on the West Coast, according to Andy Gross, a spokesperson for AAA.
Despite volatility in the oil markets, gasoline prices have remained flat or fallen since mid-September. Crude oil recently experienced three consecutive weeks of losses, a phenomenon not seen since May.
As of Monday, West Texas Intermediate (WTI) crude oil was trading just above $77 per barrel, while Brent crude oil was hovering above $82 per barrel.
In summary, gasoline prices are decreasing in several states, with some states averaging below $3 per gallon. This decline is due to lower seasonal demand and the use of cheaper winter-grade gas. However, the national average remains higher at $3.36 per gallon. Gasoline demand is expected to decrease further next year, and drivers can continue to expect relief at the pump if oil prices remain stable and there are no major refinery outages.
