Topline
The national average price for a gallon of gas prices has dropped off a cliff from this time last year, bringing prices just above $3.50 ahead of the July 4 weekend, one of the busiest travel weekends of the year, and experts believe prices could keep falling.
Gas prices have plummeted over the past year, and could keep falling.
Key Facts
U.S. gas prices, on average, stand at $3.52 on Thursday after falling for seven straight days to a three-week low, according to data from GasBuddy.
That drop puts the national average exactly $1.50 below its all-time peak last June, and $1.33 below the average price this time last year, though drivers in six states still see prices above $4.00, on average: Alaska, California, Hawaii, Nevada, Oregon and Washington, which unseated California for the title of state with the most expensive gas prices ($4.99).
AAA spokesperson Andrew Gross said the drop in prices comes amid a “demand lull” ahead of the holiday weekend—gasoline demand dropped from 9.38 million barrels per day to 9.31 million barrels over the week ending on June 23, according to data published on Wednesday by the Energy Information Administration.
What To Watch For
A continued drop in prices. GasBuddy petroleum analyst Patrick De Haan said he expects drivers will see gas prices easing ahead of July 4, and said earlier this month he’s “building confidence” prices could drop below the $3 mark this fall.
Tangent
Whether or not prices continue to fall depends on Americans’ gas demand, as well as energy supplies and the price of oil, which accounts for more than half of the price of gasoline, according to AAA. Brent Crude Oil, an international benchmark, has fallen nearly 6% on the year to $74.35, while the U.S. benchmark West Texas Intermediate has dropped nearly 9% over the same time to $70.08, though prices have fluctuated as the international energy market remains unsteady following sanctions on Russia following Moscow’s invasion of Ukraine last year and as oil giant Saudi Arabia announced a 1 million barrel per day cut to oil production earlier this month.
Contra
Drivers can find the lowest prices in the U.S. in Mississippi, where the average price for a gallon of gas costs $2.98, making it the only state below the $3.00 mark. States in the South generally have lower gas prices due to a combination of factors including low gas taxes, with Louisiana following Mississippi at $3.09, followed by Alabama and Tennessee ($3.11) and Arkansas ($3.12), according to data from AAA.
Further Reading
Gas Prices Fell $1.50 Since Record Last June, And Experts Say They Could Keep Falling (Forbes)
Gas Prices Hit Two-Month High, Though Experts Doubt They Will Rebound To $5—Here’s Where They’re Most Expensive (Forbes)
Source: https://www.forbes.com/sites/brianbushard/2023/06/29/gas-prices-are-actually-dropping-ahead-of-july-4-weekend/