Gas prices have now fallen for 49 straight days, with the average price of a gallon of gas slipping below $4 in 20 states, according to AAA.
Gas costs under $4 per gallon at nearly half of America’s gas stations, AAA says, with the least-expensive gas concentrated in the South and along the Gulf Coast. Patrick De Haan, head of petroleum analysis for Gas Buddy, reports that 80,000 U.S. gas stations are currently charging $3.99 or less.
The nationwide average price of a gallon of gas this morning stands at $4.19, AAA says. The last time it stood under $4.20 was in early May.
Why the steady decrease?
Americans Are Driving Less
Because Americans have changed their driving habits. In a recent survey, AAA found that 64% of U.S. drivers reported making changes in their driving since March. The three most common changes were driving less, combining errands, and reducing shopping or dining out.
Thirteen percent reported driving a more fuel-efficient vehicle, though that change doesn’t necessarily mean they bought one. Owners of more than one vehicle could choose to use their most fuel-efficient car more often.
Supply and demand govern gas prices. Americans have reduced their demand, driving prices down.
Declining Prices Could Tempt Us Back to the Roads
That could, however, lead to a backfire effect. The federal government’s Energy Information Administration reports that demand for gasoline spiked last week. Americans burned 9.25 million barrels of gasoline last week, compared to 8.52 million the week before.
“We know that most American drivers have made significant changes in their driving habits to cope with high gas prices,” said Andrew Gross, AAA spokesperson. “But with gas below $4 a gallon at nearly half of the gas stations around the country, it’s possible that gas demand could rise.”
Related:
- What Rising Gas Prices Actually Cost You
- Gas Prices: How Hypermiling Saves You Money
- How to Get Better Fuel Economy in Your Existing Car
