As Summer Driving Peaks, Gas Drops to Lowest Prices Since 2004
CARS.COM — Gas prices continued to trend lower in the past week as refiners were able to meet high demand during the busy summer driving season and more stations began selling regular for less than $2.
The AAA Daily Fuel Gauge Report said the national average for regular unleaded gasoline was $2.22 Thursday, 4 cents cheaper than a week ago and the lowest it has been at this time of year since 2004.
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AAA estimated that roughly 25,000 of the nation’s 150,000 gas stations were selling regular unleaded for less than $2, and GasBuddy.com pegged it at nearly 30,000 stations, up from 20,000 a week ago.
The national average is 15 cents lower than a month ago and 53 cents less than a year ago, according to AAA. Eight years ago, the average price for regular was closing in on the all-time high of $4.11, set on July 17, 2008.
“Gasoline prices are poised to continue their slide this week as both crude oil and wholesale gasoline prices turned lower last week,” AAA said in a release. “The price of oil currently reflects slightly more than half the price of gasoline at the pump, so lower oil prices are expected to result in lower retail gas prices for drivers.”
Oil had rallied to more than $50 per barrel a few weeks ago but then retreated and was trading under $46 on Thursday.
GasBuddy senior analyst Patrick DeHaan predicted that the national average for regular gas “will likely stay between $2.10 and $2.35 [per gallon] for much of the remainder of the summer,” but he warned that prices in the Great Lakes states could soon bounce up 10 to 20 cents after plunging over the past month.
“With gasoline prices in the Great Lakes falling so sharply due to fierce competition, many stations find themselves selling gasoline at or close to a loss, typically setting up a widespread price hike that may occur any time in the next couple of days,” DeHaan said in a release.
Indiana saw a minor price hike over the past week, with the statewide average rising 3 cents to $2.13. Over the past month, though, the average for regular gas has fallen 46 cents in Indiana, 37 cents in Illinois, 44 cents in Michigan and 54 cents in Ohio.
Elsewhere, prices fell across the Southern half of the country, where the cheapest gas could be found. South Carolina had the lowest statewide average at $1.91, according to AAA, followed by Mississippi at $1.99. Alabama, Arkansas, Oklahoma and Tennessee were at $2. (Prices fluctuate throughout the day and could change.)
The highest average prices were in Western states, with California at $2.87, Hawaii at $2.83, Washington state at $2.67 and Alaska at $2.65.
Motorists in Western states, though, have seen the biggest price drops compared to a year ago. The statewide averages are lower by 64 cents in Utah, 70 cents in Nevada, 82 cents in Alaska and 93 cents in California.
The national average for premium gas fell by 4 cents over the past week to $2.72. Diesel fuel fell by a penny to $2.36.
