Drivers could see national fuel price average below $2 per gallon in the coming months.
Fuel prices are falling as we head into the fall season and the summer driving season comes to a close. Gas prices typically fall at this time each year, but this year’s savings are greater than those of last year, thanks to relatively low crude oil prices.
According to a report from AAA, customers are currently saving 18 cents per gallon compared to this date last year. Additionally, the current national average price for regular unleaded gasoline is down two cents from last week to $2.18 per gallon. Fuel prices have fallen for 11 of the past 12 days, but customers are still paying five cents more per gallon compared to a month ago.
AAA projected that fuel prices will continue to fall as we head deeper into the autumn months, as long as no unforeseen supply disruptions or crude oil price spikes occur. The report also indicated that another factor that is sending prices lower is the transition to winter-blend gasoline, which is cheaper to produce than the summer blends. This transition will commence on Sept. 15 in many parts of the country.
Based on data from the U.S. Energy Information Administration, in the coming months, it is possible that consumers will encounter national average fuel prices that are below $2 per gallon if crude oil prices remain relatively low and there are no issues with planned seasonal maintenance at refineries, AAA reported.
Currently, there are already seven states reporting fuel prices below $2 per gallon, including South Carolina ($1.91), Alabama ($1.94), Mississippi ($1.97), New Jersey ($1.98), Texas ($1.98), Tennessee ($1.99) and Virginia (1.99), according to AAA.