Gas prices in the U.S. are once again dropping, giving some relief to drivers who are now paying less to fill up their tanks. The national average for gas prices is currently around $3.44, down about 9 cents from a week ago, making it the largest one-week drop recorded by AAA in 2024. This decrease in prices is attributed to lackluster demand, strong supply, and relatively mild oil prices worldwide. The current average is more than 19 cents less than a month ago and over 14 cents lower compared to the same time last year.
Experts believe that the decrease in gas prices can be attributed to a variety of factors. One major factor is the shallow demand, with fewer people hitting the road following the impacts of the COVID-19 pandemic. Additionally, high gas prices in the past year, as well as the presence of more fuel-efficient cars and electric vehicles, may have also led to changes in driving habits among Americans. Refinery capacity typically eases in early summer, contributing to the drop in gas prices as factors boosting prices in late winter and early spring are no longer present.
Another contributing factor to the falling gas prices is the cooling oil costs. The price of crude oil, which is the main ingredient in gasoline, has remained relatively stable, with the West Texas Intermediate crude staying in the mid $70s a barrel. While oil prices can be volatile due to global forces such as production cuts by OPEC and allied oil-producing countries, experts believe that prices could continue to decrease if there are no major unexpected interruptions. However, they caution that events like hurricanes in the Gulf of Mexico can impact prices due to fear-driven reactions in the market.
While some states like Mississippi, Oklahoma, and Arkansas currently have the lowest average gas prices, others like California, Hawaii, and Washington have some of the highest prices in the country. Despite the fluctuations, experts predict that the national average gas price will likely stay in the range of $3.35 to $3.70 per gallon this summer. Prices typically drop even further in the fall, and it is possible that the national average could fall below $3 per gallon by late October or early November. Overall, the outlook for gas prices in the coming months remains relatively stable, barring any unexpected events impacting the market.
