Gas Prices Expected to Drop Further in the Coming Days
The current price of gasoline in the United States is lower than it was a year ago and is expected to decline even further in the coming days. The national average for gasoline is currently $3.066 per gallon, which is lower than the price of $3.09 on December 23 of last year. This decline in gas prices is due to static demand and the low cost of oil, which is currently priced at $70.00 USD per barrel.
According to AAA spokesperson Andrew Gross, “AAA predicts that 104 million Americans will drive to their vacation destinations and be greeted with the gift of falling fuel prices.” Gross also added, “With pump prices slowly falling each day, the national average is likely to drop below $3.00 per gallon by the end of the year.”
Several states in the country have experienced the most notable decreases in the price of gasoline. Michigan and Florida both saw a decrease of 17 cents, Indiana saw a decrease of 16 cents, Arizona and Illinois both saw a decrease of 14 cents, and Ohio, Montana, Washington D.C., Kentucky, and Texas all saw decreases ranging from 11-13 cents.
Official data from the Energy Information Administration (EIA) revealed that gasoline demand increased from 8.47 to 8.86 million barrels per day (b/d) last week. Meanwhile, total domestic gasoline stocks increased slightly to 224 million barrels.
While greater demand would typically drive up prices at the pump, the lower oil rates have driven prices down. If oil prices remain low, it is estimated that there will be an immediate favorable effect on gas prices, and drivers can expect prices at the pump to continue to drop during the current holiday season.