Alabama Pipeline Repair, Ample Supplies Send Gas Prices Back Down

CARS.COM — Gas prices continue to head lower now that damage from a pipeline explosion in Alabama
was quickly repaired, ensuring that an ample supply of fuel was available in the Southeast and along the
East Coast. The AAA Daily Fuel Gage Report on Thursday said the national average for regular gas was
$2.20 a gallon, down 2 cents from a week ago. Premium gas was unchanged from a week ago at $2.73,
and diesel fuel was a penny lower at $2.41.

Related: More Fuel-Efficiency News

An explosion on Oct. 31 in a pipeline that delivers fuel to states along a route from the Texas Gulf Coast
to New York City threatened the supply of gas to millions of motorists. The pipeline owner, Colonial
Pipeline, was able to repair the damage last weekend, sooner than some had expected, and the flow of
gas has resumed.

Pump prices retreated in most states the past week, including in Arkansas and Kansas, where the
average price for regular fell to $1.97 a gallon in both. Missouri has the lowest statewide average at
$1.91, followed by Oklahoma at $1.92, as prices fell by 6 cents in both the past week. Several other
states — Alabama, Indiana, Louisiana, Minnesota, Mississippi, South Carolina and Texas — were within 4
cents of $2, according to AAA.

The most expensive gas was in Western states. Hawaii was the highest at $2.90, followed by California,
$2.78; Washington, $2.70; Alaska, $2.63; and Nevada and Oregon, $2.52. Prices fell by 1 to 3 cents in all
those states the past week except Nevada, where the average was unchanged. (Prices fluctuate
throughout the day and could change.)

The Federal Highway Administration reported last week that U.S. gas consumption is up for the sixth
straight year and is running at a record level. Despite greater demand, GasBuddy.com analyst Patrick
DeHaan noted that U.S. oil and gasoline inventories are higher than a year ago, and that oil prices have
fallen over the past three weeks. Oil rose in mid-October on speculation that the Organization of
Petroleum Exporting Countries would cut production to boost oil prices, a move DeHaan says now looks
less likely.

U.S. oil rose to $51.60 per barrel on Oct. 20 but was trading at less than $45 on Thursday morning.
“The fall (in oil prices) comes as skepticism grows that OPEC won’t be able to find solid ground to cut oil
production as it previously had hoped,” DeHaan stated in a blog post.

Gas prices typically fall this time of year, and DeHaan said that regular has fallen by an average of 12
cents a gallon during November over the past five years.