Lower fuel prices are likely to be in the forecast as the summer driving season comes to an end.
Drivers were met with increasing fuel prices as August came to a close, but the beginning of September has been marked by six consecutive days of falling fuel prices.
According to the most recent fuel gauge from AAA, today’s national average for regular unleaded gasoline is $2.20 per gallon, which is two cents less than a week ago, and it is 18 cents less than this date last year. AAA noted that fuel prices made their downward turn heading into Labor Day weekend, which is regarded as the end of the summer driving season.
While fuel prices are down from a week ago, and still significantly lower than last year’s prices, the current average of $2.20 is eight cents higher than one month ago, and the year-over-year discount is shrinking. AAA has attributed the decrease in savings at the pump to the increasing crude oil prices that have resulted from the potential damage that Hurricane Hermine may have had on Gulf Coast refineries. Once it was realized that Hermine would not impact production, fuel prices dropped quickly.
While more storms are possible as hurricane season has yet to end, lower demand and the switch to less expensive winter blends will likely lead to lower fuel prices in the coming months, AAA reported.
AAA has revealed that there are still four states in the U.S. that are recording average fuel prices below $2 per gallon, including South Carolina ($1.94), Alabama ($1.97), Mississippi ($1.98) and New Jersey ($1.99).
