Average U.S. gas prices today stand at $2.59, marking the lowest levels for this time of year since 2004, according to an Aug. 24 report by AAA, which pointed to a decline in the cost of crude oil as the reason behind the dip.
Gas prices are expected to continue to decline this fall, based on a reduction in fuel demand and the switch to winter-blend gasoline.
Pump prices are 84 cents less than a year ago and 21 cents per gallon below the 2015 peak price reached on June 15, AAA reported.
BP’s largest crude distillation unit at its Whiting, Ind. refinery remains down following a malfunction on Aug. 8 that pushed prices higher in the Great Lakes region. As BP continues to work on repairs, fuel prices in the region have begun to decline based on speculation that supply issues might not be as bad as originally feared. Week-over-week, prices dropped in Indiana (-19 cents), Ohio (-19 cents), Michigan (-19 cents) and Illinois (-13 cents).
Despite the week-over-week dip, prices are double-digits higher in five Midwestern states compared to one month ago: Indiana (+30 cents), Illinois (+26 cents), Michigan (+17 cents), Ohio (+16 cents) and Wisconsin (+16 cents).
California ($3.47) continues to post the highest gas prices nationwide followed by Alaska ($3.43), while South Carolina ($2.11) posts the lowest prices in the nation.