Gas prices are falling throughout the country, and drivers may soon be paying less at the pump than they were a year ago. The national average is also expected to go below $3 in the coming weeks.
The price of a gallon of petrol has dropped by nearly 32 cents in the last month, from $3.77 to the current national average of $3.45, according to a recent study from the driving club AAA.
“Rising supply and consistent gasoline demand have led to decreasing pump prices.” “Pump prices will likely continue to fall into next week as demand stays low and supplies expand,” according to the research.
This means that gas costs may soon be lower than they were a year ago. Last year at this time, the national average was $3.38.
Patrick De Haan, head of petroleum research at the pricing comparison app GasBuddy, feels that prices are sure to fall lower — maybe even below $3 per gallon nationally by the end of the year.
“It's certainly feasible that the national average price of gasoline could go below $3 per gallon by Christmas, which would be a great gift to unwrap for motorists after a dizzying year at the pump,” De Haan said earlier this week in a study.
At the end of 2021, the national average price a gallon of petrol was around $3.30. Prices skyrocketed in early 2022 when Russia invaded Ukraine, eventually reaching an all-time high slightly around $5 in June.
Where gas prices are lowest, Americans tend to travel less this time of year as cooler weather sets in, reducing demand for petroleum.
Oil prices have declined due to a combination of global market variables, including concerns that Chinese lockdowns may reduce demand and the recent announcement by the Biden administration that Chevron will be allowed to export crude oil from Venezuela. However, oil prices may change in the next few days due to OPEC+'s meeting on Sunday to discuss output levels.
According to the West Texas Intermediate gauge, oil prices were trading at roughly $81 per barrel on Friday, down from over $89 a month earlier. Crude oil prices account for 54% of what drivers pay at the pump for a gallon of gas.
Average gas prices are currently below $3 in a few states, with all of them falling below that mark in the last 15 days. Texas ($2.82) has the lowest gas prices, followed by Oklahoma ($2.94), Arkansas ($2.96), Mississippi ($2.97), and Georgia ($2.99). From February through November, the average gallon of gasoline costs more than $3 in all 50 states.
Gas prices in California slipped below $5 this week, falling 23 cents to $4.86.
As a result, Hawaii is the only state where oil prices remain above $5. On the islands, a gallon of gas costs $5.19.
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