The nationwide average price of a gallon of gas this morning sits at $3.45, according to AAA. That’s 3 cents less than a week ago, 6 cents less than a month ago, and 37 cents less than this time last year.
Mississippi has America’s cheapest gas, at $2.96 a gallon. Hawaii is the leader no one wants to be, at $4.68 a gallon.
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Patrick De Haan, head of petroleum analysis for GasBuddy, says “the peak of US summer driving season…is over.”
We’re Pumping More Oil Than Ever and Using Less Gas Every Week
De Haan points to a “significant drop off in US gasoline demand this week.” He notes, “Compared to last week, Sunday was down 0.5%, Monday up 0.9%, Tuesday down 3.5%, Wednesday down 6.1%, Thursday down 9.0%.”
Americans used 8.9 million barrels of gasoline per day the week ending Aug. 2 (the most recent week for which data are available). That’s 4.3% less than the same week a year ago.
Further price declines are ahead — we’re still about a month out from the time when refiners can switch to less-expensive winter-blend gasoline. But, Money Magazine notes that “US oil production reached an all-time high” last week, while “at the same time demand was slightly lower compared to the same time a year ago.”
Americans bought a record number of electric vehicles last quarter, slowly pushing demand down as people drive on electricity instead of gasoline.
“Lower gasoline demand, rising supply, and stable oil costs may lead to sliding pump prices,” says AAA.
Hurricane Season Still a Threat to Pump Prices
But gas prices can be unpredictable in late summer and early fall as hurricane season spins up. A major storm in the Gulf of Mexico can disrupt refining operations there and push gas prices up nationwide.
The National Oceanic and Atmospheric Administration warned Thursday, “Atmospheric and oceanic conditions have set the stage for an extremely active hurricane season that could rank among the busiest on record.”
