Gas prices have fallen for eleven of the past 12 days, reaching today’s average of $2.18 per gallon. Drivers are saving two cents per gallon compared to one week ago, but are paying five cents per gallon more on the month. Overall gas prices remain lower than last year due to the relatively low price of crude oil with drivers saving an average of 18 cents per gallon compared to a year ago.
The national average price for unleaded gasoline is expected to keep moving lower as we head into fall barring any unexpected disruptions in supply or spikes in the price of crude oil. Pump prices typically decline during this time of year due to lower driving demand after the busy summer driving season has concluded and the changeover from summer-blend to a cheaper-to-produce winter-blend gasoline, which takes place in many parts of the country starting on September 15.
The difference between summer- and winter-blend gasoline involves the Reid Vapor Pressure (RVP) of the fuel. RVP is a measure of how easily the fuel evaporates at a given temperature. The more volatile a gasoline (higher RVP), the easier it evaporates.
Winter-blend fuel has a higher RVP because the fuel must be able to evaporate at low temperatures for the engine to operate properly, especially when the engine is cold. If the RVP is too low on a frigid day, the vehicle will be hard to start and once started, will run rough.
According to the U.S. Energy Information Administration (EIA), drivers will continue to benefit from an oversupplied market and AAA predicts that consumers could experience national average prices below $2.00 at the pump if the price of crude oil remains relatively low and refineries are able to conduct planned seasonal maintenance without issue.
Quick stats
- Gas prices in seven states are below $2.00 per gallon: South Carolina ($1.91), Alabama ($1.94), Mississippi ($1.97), New Jersey ($1.98), Texas ($1.98), Tennessee ($1.99) and Virginia (1.99).
- The biggest weekly decreases in price are seen in Indiana (-11 cents), Michigan (-10 cents), Ohio (-9 cents), Kentucky (-7 cents), Nebraska (-6 cents), Maryland (-5 cents), Minnesota (-4 cents).
West Coast
Gas prices on the West Coast remain some of the highest in the nation, with six out of ten of the nation’s most expensive retail markets located in this region: Hawaii ($2.75), California ($2.73), Washington ($2.67), Alaska ($2.58), Oregon ($2.50) and Nevada ($2.48).
Strong demand in the region is currently pressing on limited supplies. The drop in supplies can likely be attributed to issues at two California refineries earlier this month. The region also currently has the highest wholesale price for gasoline, which translates to higher prices for drivers. While prices remain on the high-end, some drivers in the region are still benefitting from significant year-over-year discounts. Only two states nationwide are posting yearly discounts of more than 50 cents per gallon and both are located within this region: Alaska (-73 cents) and Nevada (-60 cents).
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