The nationwide average price of a gallon of gas this morning stood at $3.54. That’s 9 cents less than a week ago and 14 cents less than a month ago – not particularly volatile numbers. A year ago, the nationwide average stood at $4.68.
Even the July 4 holiday barely changed prices. Most years, a peak in demand as Americans travel for the holiday drives prices higher.
What’s keeping prices so steady? Tension between supply and demand.
“Gasoline prices have struggled to find much momentum in either direction as the price of crude oil has continued to bounce around, digesting offsetting news on both sides of the scale,” says Patrick De Haan, head of petroleum analysis for GasBuddy.
The Organization of Petroleum Exporting Countries, he says, has tried to tighten supplies. But high interest rates – a policy many industrialized countries have adopted to rein in inflation – are restraining Americans’ spending.
“I don’t see much chance of a major break out of the tight range we’ve held since April,” De Haan says.
AAA Spokesperson Andrew Gross says prices “may rise over the next few days based on slightly higher demand.” But the increase “could be more of a blip than a trend, and demand may retreat once the holiday is further in the rearview mirror,” he says.
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
