Posts Tagged ‘Flood Damage’

Gas Price Slide Stalls Due to Refinery Maintenance

September 28th, 2015 by Amanda Shapiro

Michael Green Contact Tile(WASHINGTON, September 28, 2015) The national average price for regular unleaded gasoline has remained relatively stable over the past week, reaching today’s price of $2.29 per gallon, following a decline of 37 consecutive days. Although today’s average is up by fractions of a penny compared to one week ago, pump prices have fallen for 26 of the past 30 days for a total monthly savings of 20 cents per gallon. This decline has been driven by relatively low crude oil prices, declining domestic demand for gasoline following the end of the summer driving season, and the switch to cheaper-to-produce winter-blend gasoline on September 16 in many parts of the country. Crude oil prices remain under downward pressure due to ample supply and seasonal declines in demand, and drivers continue to experience significant yearly savings in the price of retail gasoline. Pump prices are discounted by an average of $1.05 year-over-year and are at their lowest point for this date since 2004.

National Averages

Falling averages are often the trend at this time of year due to a decline in driving and the switchover to winter-blend gasoline. Unlike previous years, refinery maintenance season this autumn is expected to be heavier than usual due to refineries operating at higher than normal rates for longer periods over the summer months.  As the refinery maintenance season continues to ramp-up, gas price declines could slow and temporarily change direction. However, the market’s current oversupply is expected to keep prices relatively low, and barring any unexpected price spikes, consumers should continue to experience significant yearly savings at the pump approaching the end of the year.

Motorists in a total of five states are paying averages below the $2 per gallon benchmark.  Drivers in South Carolina ($1.96) are paying the nation’s lowest averages at the pump, followed by:  Mississippi ($1.96), New Jersey ($1.98), Alabama ($1.98) and Tennessee ($1.99).  Alaska ($3.04) leads the market with highest price in the nation, and is the only state with an average price above $3 per gallon.  Regional neighbors California ($2.99), Nevada ($2.94), Hawaii ($2.90) and Utah ($2.70) are the nation’s top five most expensive markets for gasoline.

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Weekly price comparisons reveal a bit of volatility, with state averages moving by double-digit increments at both ends of the spectrum.  Despite this fluctuation, overall savings persist and motorists in the majority of states (30 and Washington, D.C.) are experiencing weekly savings in the price to refuel their vehicles. Pump prices are discounted by a nickel or more per gallon in a total of 10 states, and the largest weekly savings in the price at the pump are seen in Alaska (-10 cents), Idaho (-8 cents) and Colorado (-8 cents). On the other end of the spectrum, averages have climbed higher in 20 states over this same period. The largest weekly increases in price are seen in the Midwestern states of Indiana (+13 cents), Kentucky (+9 cents) and Michigan (+9 cents).

Consumers nationwide are experiencing monthly savings at the pump, and prices in the majority of states (46 and Washington, D.C.) have fallen by double-digit increments over this same period.  Drivers in a total of 10 states are benefitting from monthly savings of a quarter or more per gallon, with the largest savings at the pump seen in the West Coast states of Alaska (-38 cents), California (-37 cents), Oregon (-35 cents) and Washington (-34 cents).

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Yearly price comparisons continue to reflect significant discounts in the price of retail gasoline.  Averages are down year-over-year in every state and Washington D.C., and consumers in 33 states and Washington, D.C., are saving a $1.00 or more per gallon. Hawaii ($1.31), Connecticut ($1.23) and Vermont ($1.22) are posting the largest savings over this same period, and prices in 48 states and Washington, D.C., are discounted by at least 75 cents per gallon.

Uncertainty about global oil demand is reportedly impacting the price of crude, and both major benchmarks—Brent and West Texas Intermediate—opened Monday’s trading session with losses.  China, which accounts for approximately 12 percent of the world’s total oil demand and frequently ranks as a top importer, announced plans to implement a national cap-and-trade program for carbon emissions. Although the impacts of the program on the crude oil market are unknown, a reduction in the country’s demand could further exacerbate the market’s current oversupply and put a ceiling on global oil prices.

The domestic oil market also remains in question, and the balance between supply and demand is expected to heavily influence North American oil prices. Domestic oil rig counts have reportedly fallen for the fourth week in a row, and according to the U.S. Energy Information Administration, sustained low oil prices could mark the beginning of a reduction in investment in exploration and production activities.

WTI closed out Friday’s formal trading session on the NYMEX up 79 cents, settling at $45.70 per barrel, but was last reported to be nearly a dollar lower this morning in early trading.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Lowest Seasonal Gas Prices Since 2004

September 21st, 2015 by Amanda Shapiro

Michael Green Contact Tile(WASHINGTON, September 21, 2015) Today’s national average price for regular unleaded gasoline marks the lowest price for this date since 2004, and prices continue to march lower. The national average has dropped for 35 consecutive days for a total savings of 38 cents per gallon over this span. Today’s average price of $2.29 per gallon represents a weekly savings of four cents per gallon and a monthly savings of 33 cents per gallon. Motorists are saving $1.05 per gallon compared to one year ago, largely due to the relatively low price of crude oil and abundant petroleum supplies.

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In addition to the seasonal switchover to less expensive winter-blend gasoline, the fall months are also a time when refineries go offline to conduct seasonal maintenance. This is intentionally scheduled during the months when demand for gasoline and heating oil is relatively low, and it is not uncommon for pump prices to decline during this time of year due to decreased driving demand and the cost savings associated with winter-blend gasoline.

This past summer was characterized by relatively high driving demand and refineries operated at higher capacities for longer periods of time. As a result, many are expecting the fall maintenance season to be heavier-than-usual. Barring any unexpected spikes in the price of crude, retail averages are not expected to climb this fall due to the market’s current oversupply.

The majority of consumers nationwide are continuing to see falling prices at the pump. Alaska ($3.13), California ($3.06) and Nevada ($3.00) are the market leaders and the only three states with averages above $3 per gallon. On the other end of the spectrum, a total of five states are posting averages below $2 per gallon: South Carolina ($1.90), Mississippi ($1.93), Alabama ($1.95), Tennessee ($1.99) and Louisiana ($1.99).

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Pump prices are down in 47 states and Washington, D.C. in comparison to one week ago, with the motorists in the majority of these states (34 and Washington, D.C.) saving at least a nickel per gallon. Drivers in six states are benefitting from double-digit savings in the price of retail gasoline, with the largest discounts over this period seen in Alaska (-15 cents), South Dakota (-11 cents) and California (-11 cents).  The Midwestern states of Indiana (+10 cents), Michigan (+ 8 cents) and Ohio (+7 cents) are the only three states outside of this trend, and prices have moved higher week-over-week. Prices in the Midwest have consistently been among the most volatile in the nation over the past several years, and while prices are up on the week, these same three states are among those posting the largest declines over the weeks prior.

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With the exception of Utah (-4 cents), retail averages are discounted by double-digit increments in every state and Washington, D.C. month-over-month. The largest savings at the pump are seen in states where averages continue to move lower following the resolution of localized refinery issues : Illinois (-62 cents), Indiana (-56 cents), Michigan (-54 cents) and Wisconsin (-52 cents). Consumers in 33 states are saving a quarter or more per gallon to refuel their vehicles.

Year-over-year savings in the price of retail gasoline continue to widen nationwide, and motorists in 36 states and Washington, D.C. are saving at least a $1 per gallon. Consumers in Hawaii (-$1.32) and Connecticut ($1.21) are saving the most per gallon over this same period and 22 states are posting yearly savings of $1.10 or more per gallon. Nevada (-57 cents) and California (-68 cents), the only two contiguous states with averages above $3 per gallon, are also the only two states where drivers are not experiencing yearly savings of at least 75 cents or more at the pump.

The global oil market appears to be holding steady, following the Federal Reserve’s decision to leave interest rates unchanged.  The Fed has kept interest rates near zero since 2008 in an effort to help stimulate economic growth. Raising U.S. interest rates often causes the U.S. dollar to gain strength, which makes oil more expensive for countries holding other currencies.

Oversupply characterizes the domestic oil market and attention remains focused on oil inventories and reports of production declines and falling oil rig counts. WTI closed out Friday’s formal trading session down $2.22, settling at $44.68 per barrel.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Average Gas Prices Fall Below $2 in Three States

September 14th, 2015 by Amanda Shapiro

Michael Green Contact Tile(WASHINGTON, September 14, 2015) Falling gas prices continue to benefit motorists with three southern states posting averages below $2 per gallon: South Carolina, Mississippi, and Alabama. This is the first time that three states have had averages below $2 since February. The national average price for regular unleaded gasoline has fallen for 28 consecutive days, reaching today’s price of $2.33 per gallon. Drivers are saving six cents per gallon compared to one week ago and 33 cents versus one month ago. Gas prices remain much cheaper than last year due to the relatively low price of crude oil with drivers saving an average of $1.06 per gallon compared to a year ago.

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Barring any unexpected disruptions in supply or spikes in the price of crude oil, the national average is expected to keep moving lower as we head into the fall. Pump prices typically decline during this time of year due to lower driving demand after the busy summer driving season and the changeover to cheaper to produce winter-blend gasoline, which takes place in many parts of the country starting on September 16. U.S. drivers continue to benefit from an oversupplied market and consumers could experience even lower prices at the pump if the price of crude oil remains relatively low and refineries are able to conduct planned seasonal maintenance without issue.

On the whole, retail averages are down nationwide, including the three states — South Carolina ($1.94), Mississippi ($1.99), and Alabama ($1.99) — where averages are back below $2 per gallon. The most expensive markets for retail gasoline are west of the Rockies, with drivers in Alaska ($3.28) continuing to pay the highest averages at the pump. Regional neighbors California ($3.17), Nevada ($3.06), Hawaii ($2.97) and Idaho ($2.81) are the top five most expensive markets for gasoline.

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With just one exception, motorists in every state are experiencing savings in the price of retail gasoline week-over-week. Averages are down by a nickel or more in 30 states and Washington, D.C., and pump prices in Indiana (-14 cents), Illinois (-13 cents), California (-10 cents) and Michigan (-10 cents) have dropped by double-digit increments over this same period. Outside of this trend is Ohio, where prices have climbed higher by three cents per gallon versus one week ago.

Monthly price comparisons show consumers nationwide are paying less to refuel their vehicles. With the exception of Utah (-2 cents), drivers across the nation are saving more than a dime per gallon at the pump month-over-month and prices are discounted by a quarter or more per gallon in more than half (26) of the states. The largest discounts in price over this same period have been in the Midwestern states of Indiana (-81 cents), Michigan (-75 cents), Ohio (-66 cents) and Illinois (-62 cents), where prices continue to retreat following the resolution of localized refinery issues.

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Yearly discounts are widening even further, with drivers in the majority of states (35) saving at least $1 per gallon at the pump. The largest yearly savings are in Hawaii (-$1.30), Indiana (-$1.27), and Michigan (-$1.24), and prices are down 75 cents or more in 47 states and Washington, D.C.  Market leaders Nevada (-58 cents), California (-62 cents) and Alaska (-69 cents) are outside of this trend.

The global oil market remains volatile and the overall sentiment continues to swing between bulls and bears in response to recent reports. The International Energy Agency is predicting that production from non-OPEC countries will fall by its largest increment in 24 years, and the organization attributes this decrease to the success of OPEC’s strategy to protect its market share by sustaining production despite the relatively low price of crude oil. Also according to IEA, global oil demand is expected to increase in 2016. The combination of lower production and higher demand is reportedly contributing to the sentiment that a bullish market could be on the longer-term horizon.

In what is being described as its latest play to remain influential over global oil markets, OPEC welcomed Indonesia back into the cartel, making the Southeast Asian nation the only member country that is not a net exporter. Indonesia was a member of the cartel for 47 years and suspended its membership in 2009 when its balance between consumption and production shifted. OPEC is next scheduled to meet in December in Vienna, and during this meeting the country will officially rejoin as a member. At present, the oil cartel does not plan to convene prior to the December meeting to discuss strategy, and the global oil market is likely to remain bearish in the near term.

The domestic oil market remains oversupplied, and according to the most recent report from the U.S. Energy Information Administration, oil inventories continue to build despite domestic production declines. The price of West Texas Intermediate crude oil, the traditional U.S. benchmark, is expected to remain relatively low as seasonal refinery maintenance gets underway and demand for gasoline decreases as we enter the fall.

WTI closed out Friday’s formal trading session on the NYMEX down $1.29, capping a loss of nearly three percent for the week, and settled at $44.63 per barrel.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Summer Ends with Gas More than $1 Cheaper than a Year Ago

September 8th, 2015 by Amanda Shapiro

Michael Green Contact Tile(WASHINGTON, September 8, 2015) The 2015 summer driving season ended with the national average at its lowest point for the Labor Day holiday in more than a decade. Motorists paid an average price of $2.40 per gallon at the pump yesterday, a savings of $1.04 per gallon in comparison to last year’s holiday. The national average price for regular unleaded gasoline has fallen 22 consecutive days for a total of 28 cents per gallon, reaching today’s average of $2.39 per gallon. Drivers are saving seven cents per gallon versus one week ago and 20 cents versus one month ago.  Yearly price comparisons continue to reflect savings of more than $1 per gallon, with today’s price discounted by $1.05 versus this same date last year.

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Motorists have enjoyed lower prices at the pump throughout this summer, with an average savings of 89 cents per gallon compared to last year’s summer driving season, which typically runs from Memorial Day to Labor Day. These lower prices have encouraged motorists to hit the road in record numbers and meant some of highest demand numbers over the first eight months of 2015. Prices are expected to continue to slide as driving demand experiences a seasonal decrease heading into the fall, provided the price of crude remains relatively low and refineries are able to conduct routine maintenance without issues. According to the U.S Energy Information Administration, refineries reported higher than normal utilization rates and more maintenance is scheduled for this year compared to previous years. This could slow the rate of anticipated declines in the price at the pump; however, it is not expected to cause a reversal of direction.

The conclusion of the summer driving season also signals the start of the seasonal switchover to winter-blend gasoline in many parts of the country on September 16. The Environmental Protection Agency requires certain areas to use a specified blend of gasoline, commonly referred to as summer-blend gasoline, in order to address air quality issues during the summer months. This more expensive summer-blend gasoline is not required during the winter months and prices tend to fall following the completion of this seasonal switchover.

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The highest retail averages are found in states west of the Rockies, and drivers in Alaska ($3.35) are paying the most per gallon at the pump. A total of four states are posting averages above $3 per gallon, and regional neighbors California ($3.26), Nevada ($3.10), Hawaii ($3.03), and Washington ($2.88) round out the top five most expensive markets for gasoline. Pump prices slipped below $2 per gallon in South Carolina, the nation’s least expensive market for gasoline, over the weekend and drivers are currently paying an average price of $1.97 per gallon.

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With the exception of Delaware (+4 cents) and Utah (fractions of a penny), retail averages are down in every state and Washington, D.C. week-over-week. Weekly price comparisons reveal that motorists in more than half of the country (26 states) are saving a nickel or more per gallon at the pump and prices are discounted by double-digits in five states. The largest savings over this same period are seen in states previously impacted by the Whiting, Indiana refinery outage and where prices are now falling as production at the facility has restarted: Indiana (-17 cents), Ohio (-15 cents), Illinois (-14 cents) and Michigan (-12 cents).

Consumers nationwide are paying less per gallon to refuel their vehicles versus one month ago. Retail averages are down by a dime or more per gallon in 43 states and Washington, D.C. over this same period, and motorists in eight states are saving a quarter or more per gallon at the pump. The most significant monthly discounts in price are seen in California (-33 cents), Oregon (-29 cents) and New Jersey (-27 cents).

Prices remain markedly lower year-over-year in every state, and averages are discounted by at least 75 cents per gallon in 47 states and Washington, D.C. Market leaders Alaska (-67 cents), California (-56 cents) and Nevada (-59 cents) are the only states to buck this trend. Pump prices are discounted by $1 or more per gallon in 33 states, with the largest savings over this same period reflected in the Midwestern states of Indiana (-$1.28), Michigan (-$1.26) and Ohio (-$1.26).

While prices have been volatile in recent weeks, a long-term bearish sentiment continues to underscore the global oil market as speculation about the balance between supply and demand from emerging economies remain front of mind. A small group of oil ministers from both OPEC member countries and non-OPEC member counties located in the Persian Gulf are scheduled to meet this week, and although oil prices are not officially on the agenda, the market will closely monitor developments for any clues about OPEC’s plans for production.

The domestic oil market has been described as bullish in recent trading sessions, after posting gains upwards of 20 percent following a multi-year low of $38.60 per barrel (August 26). Despite this recent jump, the price of WTI is likely to face downward pressure due to seasonal declines in demand and reduced crude oil purchases by refineries, both capable of further exacerbating the imbalance between supply and demand.

WTI opened today’s trading session down approximately 60 cents per barrel, after closing Friday’s formal trading session on the NYMEX down 70 cents, settling at $46.05 per barrel.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Gas Prices Under $2 on the Way

September 3rd, 2015 by Amanda Shapiro

Michael Green Contact Tile


AAA Monthly Gas Price Report: Sept. 3, 2015

Americans to Pay Lowest Labor Day Gas Prices Since 2004

  • Most U.S. drivers will pay the lowest gas prices since 2004 for the busy Labor Day weekend. Today’s national average price of gas is $2.44 per gallon, which is 99 cents per gallon less than a year ago. U.S. consumers should save more than $1 billion on gasoline over the holiday weekend compared to 2014, with many drivers saving about $15-$25 on every trip to the gas station.
  • “Americans should find good deals on gas prices in most parts of the country heading into the busy Labor Day weekend,” said Avery Ash, AAA spokesman. “It is unbelievable that drivers are ending their summer vacations with the lowest gas prices for this time of year in more than a decade.”
  • Average U.S. gas prices have dropped about 37 cents per gallon since hitting a 2015 peak price of $2.80 on June 15. Average gas prices have dropped due to lower crude oil costs and abundant petroleum supplies.
  • Gas prices averaged $2.60 per gallon in August, which was the lowest average for the month since 2005. The average price in August was about 15 cents per gallon less than in July.
  • Gas prices remain relatively high compared to the cost of crude oil. WTI oil prices closed at $46.25 per barrel yesterday, which was similar to the cost of oil in January. Nevertheless, average gas prices are about 41 cents per gallon more expensive than the lowest daily average in January. Gas prices are higher than would otherwise be expected due to high demand and ongoing refinery problems, along with the higher cost to produce summer-blend gasoline that is required in many areas. When the market is running smoothly, gas prices generally drop about 2.4 cents per gallon for every $1 per barrel change in the cost of crude oil.
  • Summer is the busiest time of the year for driving and millions of Americans are taking advantage of lower gas prices to travel more this year. New estimates by the Federal Highway Administration showed that U.S. driving topped 1.54 trillion miles in the first half of 2015, which was an all-time high. Increased driving results in higher fuel demand, which can lead to higher gas prices.
  • A number of major refineries have experienced production problems this year, which has led to significantly higher regional prices when combined with high fuel demand. In August, BP’s refinery in Whiting, Ind. was forced to shut its largest crude distillation unit temporarily. Gas prices across the Midwest jumped in response with averages in some Great Lakes states up more than 50 cents per gallon in less than a week. BP was able to repair the facility faster than expected, and prices have returned nearly all of those gains, though at a much slower pace than the initial price spike.
  • Gas prices remain relatively high on the West Coast, in part because ExxonMobil’s refinery in Torrance, Calif. is still not operating at normal levels. The refinery experienced an explosion in the spring that sent gas prices in parts of California above $4 per gallon. Gas prices have since declined as supplies enter the market form other areas, yet gas prices in California and neighboring states remain near or above $3 per gallon. The refinery reportedly will ramp up in production in October as it completes repairs.
  • Oil prices have experienced dramatic price swings in recent weeks. The cost of West Texas Intermediate crude oil closed at a high for the year of $61.43 per barrel on June 10. On August 24, the cost of crude oil dropped to $38.24 per barrel, which was the lowest closing price since early 2009. Oil prices have since moved upwards on updated domestic production data and rumors that OPEC may curtail production.
  • Oil remains much cheaper than in recent years because of abundant supplies. Growing concerns about the Chinese economy, the likelihood of Iranian oil entering the market and strong domestic production have helped lower oil prices since June. The dramatic growth in the Chinese economy helped drive commodity prices higher in recent years, while the recent economic slowdown has helped to lower prices. Iran promises to unleash as much as a million barrel per day of oil into the market if economic sanctions on the country are lifted. Meanwhile, domestic crude oil production remains nearly 13 percent higher than a year ago, and U.S. commercial supplies are about 27 percent higher than a year ago.
  • The average price of diesel was cheaper than gasoline for six days in August for the first time since 2009, due to seasonal factors and the elevated cost of gasoline. Today’s average price of diesel is $2.57 per gallon.

Gas Prices Could Fall Below $2 per Gallon by Christmas

  • “Gas prices in many parts of the country could fall below $2 per gallon by Christmas if the cost of crude oil remains low,” continued Ash. “There is good reason to believe that cheaper oil costs, a seasonal decline in driving and the switchover to less costly winter-blend gasoline will continue to push down prices through the end of the year.”
  • Gas prices generally drop after Labor Day, which is considered the end of the summer driving season. People typically drive less in the autumn and winter, which is when gas prices usually reach a low for the year.
  • Refinery maintenance this autumn could slow, but not stop a decline in gas prices. Refineries typically conduct maintenance in the autumn and spring when demand for gasoline, diesel and heating oil is relatively low. Even as refineries conduct maintenance, gasoline supplies should continue to outstrip demand unless there are unexpected problems.
  • Many parts of the country can switch over to less expensive, winter-blend gasoline on September 16. The EPA requires that parts of the country use summer-blend gasoline during hot-weather months to improve air quality, but this fuel is unnecessary once temperatures begin to cool. Occasionally, gas prices can increase temporarily in the days leading up the switchover deadline as supplies of remaining summer-blend gasoline tighten.
  • Crude oil remains the primary wildcard in determining future gas prices. If OPEC cuts production, the Chinese economy grows stronger or if Iranian oil is unable to enter the market, then oil prices could rise and push up the cost of gasoline. There also is a possibility that oil prices could drop further in the coming months given the weaknesses in the global economy and because refineries conducting maintenance will need less crude oil.
  • The price of oil briefly dipped below $40 per barrel last week. Historically, sustained oil prices below $40 per barrel have resulted in a national average price of gas below $2 per gallon.
  • There is always the possibility that gas prices could rise due to a number of factors, such a major hurricane striking the U.S. Gulf Coast, higher crude oil prices or unexpected refinery problems.

Gas Under $2 per Gallon Growing More Common in the Southeast

  • More than five percent of all U.S. stations are selling gas for less than $2 per gallon and those numbers are growing every day. Last year at this time there were zero stations selling gas under $2 per gallon.
  • The average price of gas in South Carolina is $2.00 per gallon, and will likely fall below that mark before Labor Day weekend begins. Average prices in Alabama and Mississippi also may fall below $2 per gallon over the next week. The last time any state had an average below $2 per gallon was on February 26, when both Idaho and Utah were below that mark.
  • The five most expensive state averages include: Alaska ($3.40), California ($3.31), Nevada ($3.11), Hawaii ($3.08) and Washington ($2.92). The states with the lowest average gas prices include South Carolina ($2.00), Alabama ($2.06), Mississippi ($2.06), Tennessee ($2.14) and Louisiana ($2.16).

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

AAA updates fuel price averages daily at www.FuelGaugeReport.AAA.com. Every day up to 120,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline. For more information, contact Michael Green at 202-942-2082, mgreen@national.aaa.com.

Cheapest average gas prices for late August since 2004

August 24th, 2015 by Amanda Shapiro

Michael Green Contact Tile(WASHINGTON, August 24, 2015) Average U.S. gas prices today are at the lowest levels for this time of year since 2004 due to the steep decline in the cost of crude oil. Gas prices have dropped recently despite ongoing refinery problems, and prices should continue to fall this autumn due to declining demand and the switchover to winter-blend gasoline. Today’s national average price of gas is $2.59 per gallon, which is eight cents less than a week ago and 84 cents less than a year ago. Pump prices are now 21 cents per gallon below the 2015 peak price reached on June 15.

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BP’s largest crude distillation unit at its Whiting, Indiana refinery remains out of commission, due to a malfunction reported on August 8 that triggered dramatically higher prices in the Great Lakes region. Repairs to the unit are reported to be ongoing, and the company has yet to release a date they expect the unit to return to production. However, BP has purchased additional fuel supply and met all of its contractual requirements to date. Although regional supply is still uncertain due to the outage, prices in the region have moved lower over the past week as speculation has built that supply issues might not be as dire as first worried.

Motorists in the Pacific Northwest continue to pay the nation’s highest averages, with five of the six states with averages above $3 per gallon located in this region. California ($3.47) leads the market, and is followed by regional neighbors Alaska ($3.43), Nevada ($3.18), Hawaii ($3.17) and Washington ($3.04) as the nation’s most expensive markets for retail gasoline. Drivers in South Carolina ($2.11) are paying the lowest average at the pump.

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Weekly price comparisons continue to reflect volatile fluctuations in the balance between regional supply and demand. Just a week after Midwestern drivers were reeling from sharply higher pump prices, motorists in these same states have seen prices plummet week-over-week: Indiana (-19 cents), Ohio (-19 cents), Michigan (-19 cents), and Illinois (-13 cents). Consumers in 30 states are experiencing weekly savings of at least a nickel per gallon at the pump and a total of seven states are posting double-digit savings over this same period. Prices in every state are lower today than one week ago.

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Retail averages are down in 44 states and Washington, D.C. month-over-month. The largest discounts in the price of retail gasoline were in California (-36 cents) and New Jersey (-25 cents). Consumers in 33 states and Washington, D.C. are enjoying monthly savings of a dime or more per gallon at the pump. On the other end of the spectrum, retail averages have moved higher in six states over this same period. 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).

Year-over-year discounts in the price of retail gasoline persist, largely due to the price of crude being significantly discounted from this date in 2014. Pump prices in nearly every state (48 and Washington, D.C.) are more than 50 cents per gallon lower than this same date last year. Motorists in 12 states are saving $1 or more per gallon in the average price to refuel their vehicles.

Crude oil prices have continued to sag, due to persisting global oversupply and concerns about the health of the Chinese economy. China is one of the world’s largest and most rapidly growing economies. Evidence of slower than projected growth in the Chinese economy is rippling through global markets and has put additional downward pressure on the price of crude. Both crude oil benchmarks (Brent and West Texas Intermediate) ended last week at their lowest levels since March 2009, and the market is expected to remain volatile in the near term. At the close of Friday’s formal trading on the NYMEX, WTI settled at its lowest close since March 2, 2009 down 87 cents at $40.45 per barrel. These losses accelerated today as WTI opened the week trading $1.50 per barrel lower, well below the $40 per barrel threshold.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Midwest Gas Prices Jump Due to New Refinery Problem

August 17th, 2015 by Amanda Shapiro

Michael Green Contact Tile(WASHINGTON, August 17, 2105) The national average price for regular unleaded gasoline ended a 27-day streak of daily declines last week and has since increased for six straight days. Today’s average price of $2.67 per gallon is an increase of eight cents per gallon versus one week ago, due largely to a new refinery problem in the Midwest. Despite recently rising prices, drivers are saving nine cents per gallon month-over-month and continue to enjoy significant yearly savings with today’s average discounted 79 cents per gallon versus this same date last year.

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Motorists in the Midwest are familiar with volatile prices during the summer driving season, yet it is very rare to see the magnitude of the price jumps that occurred over the past week, particularly in Indiana, Illinois, Michigan, Ohio and Wisconsin. Prices in the region moved markedly higher on the heels of news that BP had unexpectedly shutdown the largest of its three crude distillation units (CDU) at its Whiting, Indiana refinery on Saturday, August 8 for unscheduled repair work. The refinery is capable of producing 430,000 barrels of refined product per day, and the shutdown of the facility’s CDU has noticeably impacted supply within the region. BP is reportedly working to meet its fuel supply obligations and has yet to report when it expects the unit to resume production, though initial reports indicate it may take a month or longer to repair. While the Great Lakes region has experienced the largest price increases, drivers in neighboring states and in the Central United States also have seen prices rise over the past week in response to this latest refinery problem.

Retail averages on the West Coast also remain volatile due to changes in the balance between supply and demand. California ($3.58) remains the nation’s most expensive market for retail gasoline, and is joined by Alaska ($3.47), Nevada ($3.22), Hawaii ($3.20) and Illinois ($3.16) as the nation’s top five most expensive markets.  Consumers in South Carolina ($2.18) and Alabama ($2.21) are paying the nation’s lowest averages at the pump.

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Week-over-week the average price at the pump has climbed higher in 20 states. Pump prices in the Midwest have skyrocketed due to the aforementioned refinery issues. Motorists in Indiana have seen prices jump by 59 cents per gallon over this period, and similar price surges occurred in the neighboring states of Illinois (+56 cents), Michigan (+51 cents), Ohio (+44 cents) and Wisconsin (+39 cents). On the other end of the spectrum, prices are down in 30 states and Washington D.C., and have fallen in a less dramatic fashion with the largest declines in New Jersey (-5 cents), Rhode Island (-5 cents) and Delaware (-5 cents).

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Drivers in the majority of states are experiencing monthly savings at the pump. Retail averages have moved lower in 39 states and Washington, D.C., month-over-month, and price comparisons in 30 states and Washington, D.C., are reflecting double-digit savings. The largest discounts in price over this same period are in California (-30 cents), Delaware (-23 cents) and North Carolina (-21 cents). Motorists in 11 states are paying monthly premiums at the pump, led by Indiana (+38 cents), Illinois (+32 cents), Michigan (+26 cents), and Wisconsin (+25 cents).

The relatively low price of crude remains evident in the significant year-over-year savings at the pump. Pump prices are discounted by $1 or more in five states compared to this same date last year: Hawaii (-$1.11), Connecticut (-$1.06), Vermont (-$1.06), Alabama (-$1.00) and New Hampshire (-$1.00), and drivers in more than half of states (34 states and Washington, D.C.) are enjoying yearly savings of 75 cents or more per gallon.

Market fundamentals continue to support the price of crude moving lower in the near term due to global oversupply. In addition to reports confirming the likelihood of sustained production from both OPEC and higher cost production countries like the United States, which has kept downward pressure on the price of crude, the market is now responding to reports that the Japanese economy is shrinking. Both exports and consumer spending fell in Japan from April to June, which has been viewed as yet another signal that supply will likely outpace demand in the near term.

West Texas Intermediate opened the week trading at a six-year low due to this evidence of continued global crude oversupply and weakening economies. This comes on the heels of WTI closing out last week at $42.50 per barrel, up slightly on the day.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

U.S. Average Gas Prices Drop 26 Consecutive Days

August 10th, 2015 by Amanda Shapiro

Michael Green Contact Tile(WASHINGTON, August 10, 2015) The national average price for regular unleaded gasoline has fallen for 26 consecutive days, reaching today’s average of $2.59 per gallon. This is the longest streak of consecutive declines since January, and pump prices have moved lower by 19 cents per gallon over this period. Drivers are saving six cents per gallon week-over-week, and 17 cents per gallon month-over-month. The relatively low price of crude continues to provide consumers with significant yearly savings, and today’s average gas price is 89 cents per gallon lower than this same date last year.

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West Texas Intermediate (WTI), the domestic benchmark for crude oil, has reached its lowest price since March 2015, and market fundamentals point to prices moving lower in the near term. Oversupply continues to characterize the oil market, and according to the latest report from the U.S. Energy Information Administration (EIA), refinery utilization rates are running at record highs. The monthly average price of crude oil currently accounts for approximately 40 percent of the price consumers pay at the pump, and with WTI posting its sixth consecutive week of losses, pump prices are likely to post notable declines leading up to the Labor Day holiday.

California ($3.58) is the nation’s most expensive market for retail gasoline, though prices in that state have fallen for 14 consecutive days for a total savings of 23 cents per gallon. Regional neighbors Alaska ($3.48), Hawaii ($3.23), Nevada ($3.20), Washington ($3.13) and Oregon ($3.04) are the only other states posting averages above $3 per gallon, and this region remains the nation’s most expensive market. On the other end of the spectrum, motorists in South Carolina ($2.20) are paying the nation’s lowest prices at the pump.

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Regional volatility is reflected in weekly price comparisons, with the largest movements in price occurring in states where refineries have completed repairs or are currently undergoing maintenance. With the exception of Ohio (+10 cents), consumers in every state and Washington, D.C. are experiencing weekly savings in the price at the pump. While prices in Ohio have risen over the past week, Ohioan motorists are still enjoying significant savings (20 cents) compared to a month ago. Drivers in California (-15 cents), Minnesota (-11 cents), Oklahoma (-10 cents) and Iowa (-10 cents) are experiencing the largest weekly discounts in price, and drivers in a total of 36 states are saving at least a nickel per gallon in at the pump week-over-week.

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The average price at the pump has moved lower in 48 states and Washington, D.C. month-over-month. Motorists in 35 states and Washington, D.C. have seen prices move lower by double-digit increments over this same period, with the largest drops in price seen in Michigan (-36 cents), Indiana (-32 cents) and Kentucky (-31 cents). Outside of this trend prices have climbed higher, although in a less dramatic fashion, in Colorado (+9 cents) and Alaska (fractions of a penny) compared to one month ago.

Yearly comparisons continue to reflect significant discounts in the average price for retail gasoline. The vast majority of drivers (47 states and Washington, D.C) are saving 75 cents or more at the pump, and retail averages are down by $1 or more in seven states over this same period. The largest year-over-year discounts in the price at the pump are seen in Indiana (-$1.13), Michigan (-$1.10) and Hawaii (-$1.10).

Expectations that the global oil market will remain oversupplied in the near term are keeping downward pressure on the price of crude. The Chinese economy continues to show signs of weakness, which increases concerns that this expected driver of global consumption may not be poised to help counter the market’s oversupply. The global oil market is also paying close attention to the potential for Iranian oil to return to market as early as this fall, as well as high production from the U.S. and Saudi Arabia, OPEC’s swing producer.

Domestic focus has shifted to the potential for a glut in gasoline due to strong refinery runs and the potential for demand to drop as the summer-driving season concludes. In addition, U.S. crude oil rig counts have added 32 rigs over the last six weeks. Combined with record refinery runs, it is increasingly likely that excess supply will characterize the domestic market and keep downward pressure on WTI.

At the close of Friday’s formal trading on the NYMEX, WTI settled down 79 cents at $43.87 per barrel, which was a five-month low.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Gas Price Slide Reaches 19 Days

August 3rd, 2015 by Amanda Shapiro

Michael Green Contact Tile(WASHINGTON, August 3, 2015) The resolution of localized refinery issues and lower prices for crude oil has kept downward pressure on the national average price at the pump, which has fallen for 19 consecutive days. Today’s national average price for regular unleaded gasoline is $2.65 per gallon, down six cents versus one week and 12 cents versus one month ago. Drivers are paying the lowest averages for this date since 2009, and today’s national average represents a savings of 85 cents per gallon compared to this same date last year. The national average is now 15 cents per gallon lower than the 2015 peak price of $2.80 on June 15.

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The national average has steadily dropped, yet volatility continues to characterize several regional markets due to unexpected drawdowns in supply. While some states may not experience significant price drops as a result of regional supply and distribution issues, the national average is expected to keep moving lower leading up to the Labor Day holiday, barring any unexpected spikes in the price of global crude oil or unexpected disruptions to domestic production.

Pump prices west of the Rockies remain the most expensive in the nation and all seven states with averages above $3 per gallon are located in this region. Drivers in California ($3.74) are paying the nation’s highest averages for retail gasoline and are followed by Alaska ($3.48), Hawaii ($3.28), Nevada ($3.24) and Washington ($3.17) as top five most expensive markets for motorists. Although prices on the West Coast appear to be easing, retail averages remain volatile based on shifts in supply and demand. Alabama ($2.266) is the nation’s least expensive market, unseating South Carolina ($2.269) by fractions of a penny.

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With the exception of Indiana (+2 cents) and Alaska (+1 cents), pump prices are down in every state and Washington, D.C. over the past week. The largest discounts in price are seen in Ohio (-14 cents), Kansas (-11 cents) and Minnesota (-11 cents), while consumers in 24 states and Washington, D.C. are enjoying weekly saving of a nickel or more per gallon.

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The majority of drivers (39 states and Washington, D.C.) are paying less to refuel their vehicles month-over-month. Averages are down by a dime or more per gallon in 30 states and Washington, D.C., with the most dramatic savings in the Midwest: Ohio (-41 cents), Michigan (-38 cents), Indiana (-37 cents) and Illinois (-31 cents). Production issues had driven prices higher in this region over the past several months, and following their resolution, prices have fallen as supply and demand have returned to balance. On the other end of the spectrum, prices in 11 states have moved higher over this same period due to the lingering impact of refinery issues. Motorists in California (+30 cents) and Colorado (+13 cents) are paying the largest premiums compared to one month ago.

The average price for retail gasoline remains significantly discounted versus this same date last year. Motorists nationwide are paying less to refuel their vehicles, and prices are down by 75 cents per gallon or more in the majority of states (41 and Washington, D.C.). Year-over-year prices are down by $1 or more in five states, with the largest savings at the pump being enjoyed by drivers in Ohio (-$1.17) and Hawaii (-$1.06).

The global price of crude oil continues to sink on expectations that the market will remain oversupplied in the near term. Recent reports suggest that Chinese manufacturing has fallen to its lowest level in two years, which may signal that this important driver of global consumption is poised for less than anticipated economic growth. Weaker growth means lower than projected oil demand, which could further increase the glut in global petroleum supplies. Reports that Iran is planning to increase oil output when sanctions are lifted, combined with the U.S. increasing its rig count, has also contributed to major crude benchmarks (Brent and West Texas Intermediate) opening this week’s trading session at multi-month lows.

At the close of Friday’s formal trading on the NYMEX, WTI closed down $1.40 at $47.12 per barrel – a product of late selling on the heels of news that U.S. oil rig counts were up for the second week in a row. The market’s fundamentals are characterized as weak, and last week’s lows are expected to be tested over the next seven days.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Gas Price Decline May Accelerate in August

July 31st, 2015 by Amanda Shapiro

Michael Green Contact Tile
Average U.S. Gas Prices Falling at the Fastest Rate Since January

  • Gas prices are falling at the fastest rate since January due to cheaper crude oil costs and the resolution of some refinery issues. The national average price of gas has dropped for 16 days in row for a total of 11 cents per gallon. Today’s national average price of gas is $2.66 per gallon, which is the lowest average for this time of year since 2009.
  • “It feels good to see gas prices drop during the middle of the busy summer driving season,” said Avery Ash, AAA spokesman. “Millions of people are hitting the roads right now and these gas savings should make their trips more affordable.”
  • Gas prices averaged $2.75 per gallon in July, which was the lowest average for the month since 2010. Today’s average gas prices are about 85 cents per gallon less than a year ago. The national average has dropped about 14 cents per gallon since hitting a 2015 high of $2.80 on June 15.
  • Oil prices dropped sharply in July on oversupply concerns for the second year in a row. The cost of West Texas Intermediate crude oil closed at a high of $61.43 per barrel in late June and has since dropped below $48 per barrel. Domestic oil supplies are about 25 percent more abundant than a year ago, while domestic oil production remains about 12 percent higher than last year, according to the Energy Information Administration (EIA). Oil prices were last this low in March, when the national average price of gas was about 30 cents per gallon cheaper than today.
  • Strong fuel demand and refinery problems have kept gas prices higher than would otherwise be expected based on the cost of crude oil. Gasoline demand in July is up about six percent compared to a year ago, based on the latest four-week averages by the EIA. Strong gasoline demand can lead to tight supplies, especially if refineries are experiencing problems.
  • Lower gas prices and a growing economy have helped motivate people to drive more this year. Americans drove 275.1 billion miles in May, which was the highest monthly total on record, according to the most recent report by the Federal Highway Administration. It is likely that driving has continued to increase this summer as Americans take long road trips.
  • This is the second year in a row that gas prices dropped in July. Last year, average prices dropped 16 cents per gallon during the month before eventually plummeting $1.65 per gallon though January.
  • The average price of diesel is only seven cents per gallon more than gasoline today. The difference between gasoline and diesel reached its most narrow point since 2009 in July. In January, the average price of diesel was 90 cents more expensive per gallon than gasoline. Gasoline and diesel prices are generally closest in the summer, while strong gasoline demand and refinery problems have kept gas prices higher than would otherwise be expected based on recent crude oil costs.

Average U.S. Gas Prices to Possibly Drop Another 15 Cents in August

  • Gas prices should continue dropping to catch up with the recent decline in the cost of crude oil. All things being equal, a $12 decline in crude oil costs could reduce gas prices by as much as 29 cents per gallon. Given that prices have already dropped about 14 cents per gallon since reaching a 2015 high in June, drivers could see prices drop another 15 cents per gallon in the near term if oil remains stable and refineries operate at current production levels. Gas prices could drop even further if oil continues to fall and gasoline supplies grow larger this month.
  • The recent price declines are hopefully just a precursor of much bigger savings to come at the pump,” continued Ash. “We could see many parts of the country make another run towards $2 per gallon by the end of the year if everything keeps running smoothly.”
  • Gas prices could drop more dramatically after Labor Day as people take fewer road trips and use less gasoline, which could lead to an even larger glut in petroleum supplies. In addition, stations in many parts of the country can switch over to less expensive winter-blend gasoline on September 15. The Southeastern and Central United States are the two regions most likely to see a large number of gas stations offering prices around $2 per gallon this winter.
  • There are a number of factors that could keep gas prices from falling as expected, such as major refinery disruptions, higher oil costs, a major hurricane or conflict overseas. In addition, all parts of the country may not see prices drop as quickly. For example, refinery problems continue on the West Coast, which raises the possibility of price increases for that region if supplies grow tight.

Average Gas Prices in California are $1.50 more Expensive than in South Carolina

  • California has the most expensive gas prices in the country with a statewide average of $3.79 per gallon. California’s average is about $1.50 more expensive than South Carolina’s average, which is $2.29 per gallon and the nation’s least expensive market for retail gasoline.
  • The five most expensive state averages include: California ($3.79), Alaska ($3.48), Hawaii ($3.29), Nevada ($3.25) and Washington ($3.18). The states with the lowest average gas prices include South Carolina ($2.29), Alabama ($2.29), Mississippi ($2.33), Ohio ($2.36) and Indiana ($2.37).
  • Gas prices remain relatively high across the Western United States, due to ongoing refinery problems and strong demand. California, which has the largest concentration of drivers in the region, has experienced a number of refinery issues and supply challenges.
  • A handful of U.S. stations are once again selling gas for less than $2 per gallon. By comparison, about 11 percent of stations are selling gas for more than $3 per gallon today.
  • The most common price in the country is $2.499 per gallon, which compares to $3.399 per gallon a year ago.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

AAA updates fuel price averages daily at www.FuelGaugeReport.AAA.com. Every day up to 120,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline. For more information, contact Michael Green at 202-942-2082, mgreen@national.aaa.com.

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