Gas prices in the United States are once again on the decline, offering some respite to drivers who are now paying slightly less to fill up their tanks. According to AAA, the national average for gas prices on Monday was around $3.44, marking a decrease of about 9 cents from the previous week. This drop represents the largest one-week decline recorded by the motor club so far in 2024. Additionally, Monday's average price was more than 19 cents lower than a month ago and over 14 cents below the level seen at the same time last year.
Reasons Behind the Price Drop
The recent fall in gas prices can be attributed to a combination of factors, including subdued demand and ample supply, as well as relatively stable oil prices globally. Industry analysts point to lackluster demand, with fewer people hitting the road compared to pre-pandemic levels. The impact of the COVID-19 pandemic and high gas prices following geopolitical events have also influenced driving habits. Moreover, the increased presence of fuel-efficient cars and electric vehicles on the roads has contributed to lower consumption.
Experts note that seasonal factors, such as refinery capacity and maintenance, play a role in easing gas prices during early summer. Refinery utilization levels have increased, leading to a stronger supply of gasoline. The release of gasoline barrels from reserves by the Biden administration has had a limited national impact on prices. Additionally, cooling oil costs, with West Texas Intermediate crude prices hovering around $78 a barrel, have helped keep pump prices in check.
Potential Future Trends
Barring any major unexpected disruptions, analysts predict that gas prices could continue to decrease. However, concerns about hurricane risks, which can impact refinery operations, may lead to temporary price fluctuations. Despite this, experts anticipate the national average to remain within the range of $3.35 to $3.70 per gallon. Gas prices typically drop further in the fall, with the possibility of the national average falling below $3 in late October or early November.
Regional Disparities
While gas prices are declining nationwide, some states consistently have lower average prices due to various factors. Mississippi currently boasts the lowest average gas price at around $2.94 per gallon, followed by Oklahoma at $2.95 and Arkansas at just under $2.97. On the other hand, California, Hawaii, and Washington have the highest average prices, with California topping the list at about $4.93 per gallon, followed by Hawaii at $4.75 and Washington at $4.41.
