National Average Gas Prices Dip Back Below $2 a Gallon
CARS.COM — American motorists are benefiting from shrinking oil prices as the cost of gasoline and diesel fuel continues to edge downward in all but a handful of areas in the country. The AAA Daily Fuel Gauge Report said on Thursday that the national average for regular gas was down 6 cents from a week ago to $1.94, while diesel and premium gas each were down 5 cents to $2.18 and $2.45, respectively.
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Oil prices briefly slipped below $30 a barrel in early-morning trading, the lowest in more than a decade and a continuing sign that the global supply of crude is greater than demand. AAA said oil prices could remain depressed, noting that despite growing tensions among neighbors in the Middle East, oil production there has continued at high levels, helping to maintain the global oil glut.
Average prices for regular gas were less than $2 in 36 states, according to AAA, with Missouri posting the lowest average at $1.66. Oklahoma was close behind at $1.67, followed by Arkansas and South Carolina at $1.70. California had the most expensive gas with an average price of $2.82 for regular. Prices were highest in Southern California, and GasBuddy.com listed stations in the Los Angeles and San Diego areas as selling regular for more $3 a gallon and a handful of Los Angeles stations at more than $4.
For months California motorists have experienced price spikes brought on by unscheduled refinery outages and supply issues that were exacerbated by the state’s strict emissions rules requiring specific gasoline blends. Prices have declined in California the past two weeks, but the average for regular is still 25 cents higher than a year ago. Gas in neighboring Nevada is 15 cents higher than a year ago at $2.46.
In contrast, Hawaiians are paying 73 cents less than at this time in 2015, with the statewide average at $2.67. California and Hawaii were the only two states that averaged more than $2.50 as of Thursday morning. Alaska, New York, Vermont and the District of Columbia also are among the big losers, and motorists are saving more than 40 cents a gallon compared with a year ago.
At this time last year gas prices were nearing the end of a record 123 straight daily declines before regular bottomed out at the end of January at $2.03 per gallon.
At $1.94 for a national average, regular is 16 cents lower than a year ago, while at $2.18 diesel is 79 cents cheaper. Gas prices usually fall during the winter due to lower demand, and diesel prices rise because some of the heavier oil used for diesel is diverted to make home-heating oil. Mild winter weather and the glut of oil have put that pattern on hold, and diesel prices have continued to decline along with gas.
