Weak demand plus increased supply are likely to impact pump prices going forward.
Compared to this time last month, the national average price of gas —$2.43—is 12 cents per gallon less expensive, but compared to last year its 20 cents more per gallon.
This past week, the national average gas price dropped three cents, but some Midwestern states saw pump prices dip by as much as 10 cents per gallon, according to AAA.
“More than 97 million Americans will begin to hit the road this week for the holidays – the most ever on record,” said Jeanette Casselano, AAA spokesperson. “At 20 cents more per gallon than the same time last year, pump prices don’t seem to be a deterrent for today’s travelers. The good news is that in most states, gas prices are 12 cents less than they were a month ago. So today, motorists can find gas for $2.50 or less at 71 percent of gas stations in the country.”
AAA also noted that weekly gasoline inventories increased by an astonishing 5.7 million bbl, according to the latest Energy Information Administration (EIA) report. Demand sits above the 9 million mark, which is in line with this time last year.
“The increase in supply combined with weaker winter demand will pave the way for even cheaper winter gas prices,” added Casselano.
