Topline
The national average price for a gallon of gasoline has dropped every day for the past week, bringing drivers a much-needed reprieve as oil prices continue to fall despite rising demand—nearly a year after prices at the pump hit an all-time high.
Gas prices have fallen for seven straight days, and are more than $1 off the all-time record price … [+]
Key Facts
Gas prices fell to $3.58 per gallon Monday, according to data from GasBuddy, bringing the national average to its lowest point in nearly a month, and 10 cents below its 2023 peak of $3.68, which it hit just two weeks ago—though prices are up nearly 25 cents from their late February low of $3.32 and 53 cents from December.
Prices are lowest in Mississippi, where drivers are paying an average of $3.08 per gallon, followed by Texas ($3.17), Louisiana ($3.18), Alabama and Arkansas ($3.19), Tennessee ($3.22), South Carolina ($3.25) and Oklahoma ($3.29).
The drop in prices coincides with a drop in oil prices, which fell to $75.45 on the U.S. benchmark West Texas Intermediate and to $77.03 on the international benchmark Brent Crude Oil—even after OPEC oil-producing countries announced plans last month to substantially cut production.
In a statement, AAA spokesperson Andrew Gross said gas prices—which are 61 cents lower than this time last year—could be peaking “for now,” as long as oil prices remain in the mid-$70s per barrel.
The drop in prices also coincides with a decrease in gasoline stocks and a jump in national gas demand, with demand increasing from 8.52 million barrels per day to 9.51 million barrels per day over the seven-day period ending last Wednesday, according to Energy Information Administration data—and while high demand and low inventories normally signify a jump in prices, “fluctuating oil prices have pushed them lower,” Gross said.
Big Number
$1.44. That’s how much less drivers are paying for a gallon of gas, on average, than they were last June, when prices spiked to an all-time record of $5.02.
Contra
Gas prices are highest in California ($4.87), Hawaii ($4.78), Arizona ($4.70), Washington ($4.60), Nevada ($4.26), Oregon ($4.11) and Illinois ($4.04). While California and Hawaii are typically home to some of the country’s highest gas prices—largely due to state gas taxes and transportation costs—prices in Arizona have shot up by 41 cents over the past month, following state refinery maintenance projects and rising demand as the state’s population increases, according to GasBuddy petroleum analyst Patrick De Haan.
Key Background
Gas prices have fluctuated wildly over the past few years. Prices rose gradually in the first two years of the Covid-19 pandemic after sinking in spring 2020, before soaring between February and June of last year, as the price of crude oil—which is refined into gasoline—surged following Russia’s invasion of Ukraine and as OPEC nations refused to significantly increase production. Over the next five months, however, prices dropped substantially, sinking to a national average of $3.05 in December, as fuel demand decreased and as the Biden Administration tapped into the country’s emergency petroleum reserves ahead of the midterm elections in an attempt to keep prices low (President Joe Biden has insisted the move was “not politically motivated at all”).
Further Reading
Why Gas Prices Rise Nearly Every Spring (Forbes)
Gas Prices Hit Five-Month High—Could They Hit $5 Again? (Forbes)
Will Gas Prices Hit $5 Again Soon? Analyst Says ‘Extremely Long Shot’ (Forbes)
Source: https://www.forbes.com/sites/brianbushard/2023/05/01/gas-prices-drop-for-seven-straight-days-heres-where-its-cheapest-and-where-its-still-rising/