Posts Tagged ‘Fuel Cost’

Average new vehicle will cost nearly $8,500 annually to own and operate

ORLANDO, Fla. (August 23, 2017) – Owning and operating a new vehicle in 2017 will cost a driver an average of $8,469 annually, or $706 each month, according to a new study from AAA. The annual evaluation of driving costs reveals that small sedans are the least expensive vehicles to drive at $6,354 annually, however small SUVs ($7,606), hybrids ($7,687) and electric vehicles ($8,439) all offer lower-than-average driving costs to U.S. drivers. Conversely, of the nine categories included in the evaluation, pickup trucks are the most expensive vehicles to drive at $10,054 annually.

Additional Resources

“Determining the cost of a new vehicle car is more than calculating a monthly payment,” cautioned John Nielsen, AAA’s managing director of Automotive Engineering and Repair. “While sales price is certainly a factor, depreciation, maintenance, repair and fuel costs should be equally important considerations for anyone in the market for a new vehicle.”

In addition to analyzing the ownership costs for sedans, SUVs and minivans, AAA’s Your Driving Costs study added four new vehicle segments in 2017 – small SUVs, pickup trucks, hybrids and electric vehicles.

Vehicle Type Annual Cost*   Vehicle Type Annual Cost*
Small Sedan $6,354   Minivan $9,146
Small SUV $7,606   Large Sedan $9,399
Hybrid $7,687   Medium SUV $9,451
Medium Sedan $8,171   Pickup Truck $10,054
Electric Vehicle $8,439   Average $8,469

*Based on 15,000 miles driven annually

To estimate the overall cost to own and operate a new vehicle, AAA evaluated 45 2017 model-year vehicles across nine categories and focused on mid-range, top-selling vehicles. AAA’s annual driving cost is based on a sales-weighted average of the individual costs for all of the vehicle types. Key findings include:

Depreciation

Depreciation — the declining value of a vehicle over time — is the biggest, and most often overlooked, expense associated with purchasing a new car. New vehicles lose an average of $15,000 in value during the first five years of ownership. In 2017, small sedans ($2,114) and small SUVs ($2,840) have the lowest annual depreciation costs, while minivans ($3,839) and electric vehicles ($5,704) are at the high end of the scale.

Maintenance and repair

To calculate annual maintenance and repair costs, AAA examined factory-recommended maintenance, replacement tires, extended warranty costs and services associated with typical wear-and-tear. New vehicles, on average, will cost a driver $1,186 per year to maintain and repair.

The inevitable costs associated with maintenance and repair should be an important consideration for car shoppers, as a recent AAA survey found that one-third of U.S. drivers could not afford an unexpected repair bill. AAA Approved Auto Repair facilities offer free vehicle inspections, AAA member discounts and a 24-month/24,000-mile warranty for AAA members. Visit AAA.com/AutoRepair to find a nearby facility.

Fuel

Fuel costs vary significantly by vehicle type, ranging from 3.68 cents per mile (electric vehicles) to 13.88 cents per mile (pickup trucks). New vehicle owners, on average, will spend just over 10 cents per mile – about $1,500 annually — to fuel their vehicles.

For gasoline-powered vehicles, AAA recommends selecting a TOP TIER gasoline, as its independent research found it to keep engines 19 times cleaner, improving vehicle performance and fuel economy. AAA cautions drivers that using premium-grade gasoline in a vehicle that does not specifically require it is an unnecessary expense.

Electric Vehicles

New to the Your Driving Costs study in 2017, AAA found that electric vehicles have lower-than-average driving costs at $8,439 per year. Without a gasoline engine to maintain, electric vehicles have the lowest annual maintenance and repair costs, at $982 per year. By relying on electricity instead of gasoline, fuel costs are also significantly lower than average, at under four cents per mile. Depreciation, however, is currently extremely high for these vehicles, losing an average of nearly $6,000 in value every year.

A recent AAA survey revealed that 1-in-6 Americans are likely to choose an electric vehicle, the majority motivated by their lower long-term ownership costs.

“Although electric vehicles can have higher up-front costs, lower fuel and maintenance costs make them a surprisingly affordable choice in the long run,” said Nielsen. “For even lower costs, car shoppers can avoid high depreciation costs by selecting a used electric vehicle.”

With a focus on the future, the AAA Green Car Guide offers ratings of electric, hybrid, compressed natural gas‐powered (CNG), diesel and other high fuel economy vehicles. Visit AAA.com/greencar for more.

AAA’s Your Driving Costs study employs a proprietary methodology to analyze the costs of owning and operating a new vehicle in the United States, using data from a variety of sources, including Vincentric LLC. Additional information and detailed driving costs, including insurance costs, finances charges, registration/license fees, taxes and finance charges can be found at NewsRoom.AAA.com or AAA.com/YourDrivingCosts.

As North America’s largest motoring and leisure travel organization, AAA provides more than 57 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. Motorists can map a route, identify gas prices, find discounts, book a hotel and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. AAA clubs can be visited on the Internet at AAA.com.

U.S. Drivers Waste $2.1 Billion Annually on Premium Gasoline

September 20th, 2016 by Jessica Souto

ErinSteppAAA testing shows no benefit to splurging on premium fuel when not required by the manufacturer

ORLANDO, Fla. (September 20, 2016) – According to new AAA research, American drivers wasted more than $2.1 billion dollars in the last year by using premium-grade gasoline in vehicles designed to run on regular fuel. With 16.5 million U.S. drivers having used premium fuel despite the vehicle manufacturer’s recommendation in the last 12 months, AAA conducted a comprehensive fuel evaluation to determine what, if any, benefit the practice offers to consumers. After using industry-standard test protocols designed to evaluate vehicle performance, fuel economy and emissions, AAA found no benefit to using premium gasoline in a vehicle that only requires regular-grade fuel.

Additional Resources

“Drivers see the ‘premium’ name at the pump and may assume the fuel is better for their vehicle,” said John Nielsen, AAA’s managing director of Automotive Engineering and Repair. “AAA cautions drivers that premium gasoline is higher octane, not higher quality, and urges drivers to follow the owner’s manual recommendations for their vehicle’s fuel.”

In partnership with the Automobile Club of Southern California’s Automotive Research Center, AAA tested 87-octane (regular) and 93-octane (premium) gasoline in vehicles equipped with a V-8, V-6 or I4 engine designed to operate on regular-grade fuel. To evaluate the effects of using a higher-octane fuel when it’s not required by the manufacturer, each vehicle was tested on a dynamometer, which is essentially a treadmill for cars that is designed to measure horsepower, fuel economy and tailpipe emissions when using both fuel types and variety of driving conditions. The laboratory testing found no significant increases in any tested category, indicating the practice of using premium gasoline when it’s not required for the vehicle offers no advantage.

“AAA’s tests reveal that there is no benefit to using premium gasoline in a vehicle that requires regular fuel,” said Megan McKernan, manager of the Automobile Club of Southern California’s Automotive Research Center. “Premium gasoline is specifically formulated to be compatible with specific types of engine designs and most vehicles cannot take advantage of the higher octane rating.”

To understand the magnitude of the issue, AAA surveyed U.S. drivers to understand what type of fuel their vehicles require and the frequency at which they upgrade to premium fuel. Results reveal:

  • Seventy percent of U.S. drivers currently own a vehicle that requires regular gasoline, while 16 percent drive vehicles that require premium fuel. The remaining 14 percent own a vehicle that requires mid-grade gasoline (10 percent) or uses an alternative energy source (4 percent).
  • In the last 12 months, 16.5 million U.S. drivers unnecessarily used premium-grade gasoline in their vehicle at least once. On average, those that upgraded to premium gasoline did so at least once per month.
  • In the last 12 months, U.S. drivers unnecessarily used premium gasoline in their vehicle more than 270 million times.

“When it comes to gasoline, ‘premium’ does not mean ‘better’ if your vehicle doesn’t require it,” continued Nielsen. “Drivers looking to upgrade to a higher quality fuel for their vehicle should save their money and select a TOP TIER™ gasoline, not a higher-octane one.”

Previous AAA research found that fuel quality varies significantly among gasoline retailers and that using a gasoline that meets TOP TIER standards can result in 19 times fewer engine deposits, increase vehicle performance and improve fuel economy. To protect vehicle investments, AAA urges drivers to use the appropriate gasoline as determined by their car’s manufacturer (regular or premium) that meets TOP TIER standards for engine cleanliness and performance.

To calculate the total annual cost of using premium gasoline when not required by the vehicle manufacturer, AAA conducted a comprehensive analysis that included a U.S. consumer survey, Federal Highway Administration data, per-gallon costs of premium gasoline and regular gasoline and the average number of fill-ups annually. All testing was conducted at the Automotive Club of Southern California’s Automotive Research Center in Los Angeles, California, using an industry-standard chassis dynamometer, emissions test equipment and Environmental Protection Agency driving cycles. All gasoline used for testing was EPA Tier III certification fuel with ten percent ethanol content in both regular and premium grades. Certified test fuel was used to remove variability in fuel quality and additives. For this study, AAA did not evaluate the effects of using regular fuel in an engine that requires premium gasoline.

For additional information about premium fuel, including the full test report and fact sheet, visit NewsRoom.AAA.com.

As North America’s largest motoring and leisure travel organization, AAA provides more than 56 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. Motorists can map a route, identify gas prices, find discounts, book a hotel and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. AAA clubs can be visited on the Internet at AAA.com.

Michael Green Contact Tile(WASHINGTON, December 22, 2014) The steady decline in gas prices this autumn is now longer than any period AAA has previously tracked. The national average price of gas has declined for 88 days in a row, which is the longest consecutive streak on record. Gas prices have fallen every day since September 25 to today’s average of $2.39, which is the lowest average price per gallon since May 2009. On Sunday, the decline in gas prices broke the previous record of 86 days set in 2008 during the height of the Great Recession.

The best news for consumers is that the decline in the price at the pump has accelerated during the previous week. The current week-over-week drop of 15 cents is the largest such decline in more than six years. Motorists are paying 43 cents less than one month ago and 85 cents less than one year ago to refuel their vehicles, which mark the largest declines for those spans since 2008 and 2009 respectively.

Average-Gas-Prices-2011-20141

Comparatively low prices for retail gasoline are helping consumers to save more than $450 million per day on gasoline compared to the highs earlier this year, which likely is having a positive effect on holiday shopping and travel.  AAA estimates that 98.6 million Americans will travel 50 miles or more for the holiday season, which is the most on record. Barring any disruptions in domestic production or unexpected spikes in the global price of crude, consumers could see prices drop another 10-15 cents per gallon to ring in the New Year.

The only states where the average price for gasoline remains above the $3.00 per gallon threshold are Hawaii ($3.59) and Alaska ($3.22). In the lower 48 states, drivers in the Northeast are paying the most per gallon, led by New York ($2.88), Vermont ($2.81) and Washington, D.C. ($2.80). The average price at the pump is below $2.50 per gallon in 30 states and motorists in Missouri ($2.07), Oklahoma ($2.09), Texas ($2.16) and Kansas ($2.17) are paying the least per gallon for retail gasoline.

10-least-Expensive-Avg-Gas-Prices-12-22-14

The average price at the pump is discounted in every state and Washington, D.C. on the week, month and year. Week-over-week consumers in 46 states and Washington, D.C. are enjoying double-digit savings, with the largest savings at the pump occurring in Montana (-27 cents), Michigan (-25 cents) and Indiana (-23 cents). A total of seven states are posting savings of 20 cents or more over this same period and, while they mark the least dramatic declines in the nation, even motorists in the Northeast, one of the nation’s most expensive regions, are benefiting from weekly savings of more than a nickel per gallon: Maryland (-10 cents), New York (-10 cents), Delaware (-10 cents) and Vermont (-9 cents).

Over the past two weeks, the average price has dropped by double-digits in every state and Washington, D.C. Drivers in 26 states are saving more than a quarter per gallon over this same period, with the largest discounts in Michigan (-45 cents), Montana (-45 cents) and Idaho (-44 cents). Month-over-month the average price is down by a quarter or more in every state and 15 states are registering savings of 50 cents or more per gallon. Consumers in Idaho (-69 cents) are saving the most per gallon, followed by the Midwestern states of Michigan (-67 cents), Indiana (-61 cents) and Iowa (-59 cents).

Top10-Weekly-Savings-12-22-14

The most extreme discounts continue to be reflected in yearly price comparisons. Every state in the continental U.S. and Washington, D.C. is posting saving of at least 50 cents per gallon, and motorists in Ohio (-$1.07), Indiana (-$1.07), Michigan (-$1.04) and Kentucky (-$1.03) are saving more than one dollar per gallon. Motorists in Alaska (-43 cents) and Hawaii (-34 cents), the nation’s most expensive markets for retail gasoline, have also seen the price at the pump fall by more than 25 cents over this same period.

Abundant global supply and sluggish demand growth have helped push the global price of crude down by more than $50 per barrel since June. Although crude oil prices have seen dramatic price swings in recent years, this year’s plummet has been even more extreme and has triggered speculation surrounding the impact of sustained low prices for crude. Tumbling global prices have the potential to impact supply by slowing production in higher cost regions, which includes the United States. Additionally, a number of countries depend on oil income to balance their economies, and sustained low prices could lead to civil unrest as those governments struggle to deal with lower revenue streams.  At the close of formal trading on Friday, WTI closed down $2.14 per barrel at $57.81 on the NYMEX, the lowest settlement since May 2009.

 

Michael Green Contact Tile(WASHINGTON, December 8, 2014) The national average price for regular unleaded gasoline could test $2.50 by Christmas, and likely will fall to the lowest level since 2009 in a matter of days. Today’s average of $2.67 per gallon is the least expensive since Feb. 23, 2010. As crude oil costs continue to slide, gas prices are poised to fall even further in the next several weeks. The price at the pump has already tumbled by more than one dollar ($1.03) since the 2014 peak of $3.70 per gallon in April. The national average has dropped a dime from one week ago, 27 cents from one month ago and 60 cents per gallon from the same date last year.

Average-Gas-Prices-2011-2014

The average price for retail gasoline historically declines from fall into winter due to a number of factors including decreased demand. Consumers can expect to see the price at the pump tick lower as we approach the New Year, however, crude oil would have to fall by another $25 to $30 per barrel to cause the national average to drop below the $2.00 per gallon threshold this winter, which remains unlikely. The price of oil accounts for approximately two-thirds of the price at the pump, and a $10 per barrel drop in the price of crude oil results in about a 25-cent drop in retail prices for motorists.
Plentiful global crude oil supplies continue to be a primary contributing factor to falling averages nationwide. Forty-six states and Washington, D.C. are reporting prices below the $3.00 per gallon threshold. More than half (six) of the nation’s 10 most expensive markets are registering averages less than this benchmark, including Vermont and California where motorists are paying less than $3.00 per gallon for the first time since 2010. The nation’s most expensive markets are Hawaii ($3.78) and Alaska ($3.44), followed by the Northeastern states of New York ($3.08) and Connecticut ($3.02). Consumers in Missouri are paying the least per gallon to refuel their vehicles at $2.37 per gallon. While it is still unlikely that any state’s average will fall below $2.00 per gallon, there are individual stations in these cheapest markets where motorists can currently fill up for less than $2.00.

10-Most-Expensive-Avg-Gas-Prices-12-08-14

Week-over-week, the price of gasoline is down by a nickel or more in every state and Washington, D.C. The Midwestern states of Michigan (-19 cents), Indiana (-16 cents) and Ohio (-16 cents) are posting the most dramatic savings over this period, and lead the pack of 19 states where motorists are experiencing a weekly discount of a dime or more per gallon.

With the exception of Delaware (-9 cents), the average price at the pump has tumbled more than a dime in every state and Washington, D.C. over the past month. Motorists in twenty-seven states are enjoying month-over-month savings of a quarter or more with the largest savings in South Dakota (-45 cents), Oklahoma (-45 cents), Missouri (-41 cents) and Minnesota (-41 cents).

Yearly comparisons continue to reflect the most extreme drops in the price at the pump. Not only is the average price is down in every state and Washington, D.C. from this date in 2013, but consumers in 46 states and the District of Columbia are saving more than a quarter per gallon, and 35 states and D.C. are saving 50 cents or more per gallon.

Top10-Yearly-Savings-12-08-14

Global oil markets are still struggling to find a bottom since the Organization of Petroleum Exporting Countries’ (OPEC) decision to sustain production levels. Brent Crude and West Texas Intermediate reached their lowest levels in five years on Friday and this continues to mean cheaper gasoline at the pump for drivers. In an attempt to protect its share of the global market, Saudi Arabia, OPEC’s second largest member, is sustaining its recent price cuts and is offering barrels of oil at prices not seen in at least 14 years. This move could possibly put pressure on U.S. crude production, which is at its highest level in 30 years, and has been a leading factor for the global oil market’s increase in supply. The new oil production that has come online in the U.S. in recent years is generally understood to cost more to get out of the ground than oil produced in Saudi Arabia. If oil prices continue to fall, this more expensive U.S. production could stop being profitable, which could take some production offline until prices increase again. At the close of formal trading on Friday, West Texas Intermediate (WTI) settled below $66 per barrel for the first time since 2009, down 97 cents at $65.83 per barrel.

Michael Green Contact Tile

 

(WASHINGTON, December 3, 2014)

Holiday Drivers Saving About $200 Million per Day on Gasoline

  • Today’s national average price of gas is $2.75 per gallon, which is the lowest average since Oct. 5, 2010. Gas prices nationally are about 52 cents per gallon less expensive than a year ago, which is the greatest year-over-year savings since 2009. AAA estimates that Americans are saving about $200 million per day on gasoline compared to a year ago.
  • “Gas prices have fallen at a remarkable pace that would have been unthinkable just a few months ago,” said Avery Ash, AAA spokesman. “Lower gas prices represent real doorbuster savings as everyone begins their holiday shopping.”
  • U.S. average gas prices have dropped 69 days in a row for a total of 60 cents per gallon. This is the longest streak of consecutive price declines since autumn 2008.
  • Average gas prices have dropped about 95 cents per gallon since reaching a high of $3.70 on April 28, 2014. AAA estimates that Americans are saving about $350 million per day on gasoline compared to highs during the spring and summer.
  • The average price of gas in November was $2.89 per gallon, which was the lowest monthly average since November 2010. By comparison, gas prices averaged $3.23 per gallon in November 2013.
  • Gas prices have dropped to the lowest levels in four years due to significantly lower crude oil costs. Domestic crude oil prices (WTI) have dropped more than $40 per barrel since June with prices last week reaching levels not seen since September 2009.
  • Domestic oil production has increased by more than 70 percent since 2008 and the United States may soon become the world’s largest oil producer. This increase in production has helped to outstrip global demand, especially as economic concerns mount in both Asia and Europe.
  • OPEC chose to maintain an oil production target of 30 million barrels per day at its recent meeting on November 27, despite the recent decline in the cost of crude oil. OPEC reportedly made this decision to maintain market share and compete with U.S. tight oil producers. The price of West Texas Intermediate oil plummeted more than ten percent ($7.54) in next-day trading to settle at $66.15 per barrel following OPEC’s decision. WTI settled at $66.88 per barrel at yesterday’s close of formal trading on the New York Mercantile Exchange (NYMEX).

Gas Prices May Drop another 15-20 Cents per Gallon by New Year’s Day

  • AAA expects gasoline to drop another 15-20 cents per gallon in the near term as retail prices catch up with steep declines in the cost of both crude oil and wholesale gasoline. Gas prices likely will remain relatively low this winter due to abundant supplies and OPEC’s decision to maintain crude oil production.
  • “The holiday joy should continue as gas prices drop even further in the weeks ahead,” continued Ash. “We could see prices drop to the lowest levels since the Great Recession if the cost of crude oil continues to set multi-year lows.”
  • The decline in retail gasoline prices can lag a week or two behind changes in both futures and wholesale gasoline prices. For example, the futures price of RBOB gasoline on the NYMEX has dropped more than $1.30 per gallon since June, yet retail prices have only fallen about 93 cents per gallon.
  • Gas prices typically remain low in winter because people drive less and do not use as much gasoline during the colder months. There is little reason to expect gas prices to increase significantly until spring unless there is an unexpected spike in the cost of crude oil or an unanticipated disruption to domestic refining or distribution, which could send prices higher in an impacted region.
  • Most Americans traveling this holiday season likely will pay the lowest December gas prices since 2009. Lower gas prices should give holiday travelers more money to spend on dining, shopping and lodging during their trips.
  • While it is possible that a small handful of gas stations in the Southeast and Midcontinent may soon offer gas prices for less than $2.00 per gallon this month, it would probably take crude oil prices dropping another $25-$30 a barrel for the national average price of gasoline to reach that point.

Drivers Increasingly Paying Less than $2.50 per Gallon for Gas

  • As an indication of how low prices have fallen, U.S. consumers are more likely to find a gas station selling gas for less than $2.50 per gallon today (15 percent of stations) than above $3.00 per gallon (12 percent of stations).
  • The five states with the lowest gas prices today include: Missouri ($2.44), Mississippi ($2.51), South Carolina ($2.51), Texas ($2.52) and Oklahoma ($2.53). The five states with the highest average prices today include: Hawaii ($3.85), Alaska ($3.50), New York ($3.15), Connecticut ($3.09) and California ($3.04).
  • Forty-two states have an average gas price below $3.00 per gallon today, and it is possible that every state except Connecticut, New York, Alaska and Hawaii will have averages below that price by next week.

 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, trjohnson@national.aaa.com

Michael Green(WASHINGTON, December 1, 2014) Drivers enjoyed the lowest retail average for Thanksgiving since 2009, with the national average at $2.80 per gallon this past Thursday, and pump prices are poised to continue to drop this holiday season. The national average has fallen on 67 consecutive days, for a total drop of 58 cents during this streak. Today’s price of $2.77 is four cents less than one week ago, 23 cents less than one month ago and 50 cents less than one year ago. The national average is the lowest since October 7, 2010, and the year-over-year discount is the widest mark since October 17, 2009.

Avg Gas Prices 2011-2014

The national average has been below the $3.00 per gallon benchmark for exactly one month, and 42 states are now registering averages below $3.00 per gallon. This number is set to increase in the coming days and it’s likely that New York and Connecticut will be the only states in the lower 48 above this threshold by the end of next week.

Motorists filling their tanks in the nation’s cheapest gasoline markets are enjoying prices more than 40 cents below the $3.00 benchmark. Tumbling crude prices continue to put downward pressure on the price at the pump with drivers in Missouri ($2.47), Mississippi ($2.53), South Carolina ($2.53) and Texas ($2.54) paying the nation’s lowest prices per gallon. For the fourth week in a row, the average price at the pump is below $4.00 per gallon in every state and Washington, D.C. Hawaii ($3.87), Alaska ($3.50), New York ($3.16) and Connecticut ($3.11) lead the retail gasoline market with the nation’s highest averages.

10 least Expensive Avg Gas Prices-12-01-14

Consumers in 48 states and Washington, D.C. are experiencing week-over-week savings. The average price at the pump is down by a nickel or more in 18 states, with the largest savings in Missouri (-10 cents), South Dakota (-9 cents), Utah (-9 cents) and Idaho (-9 cents). Consumers in the Midwestern states of Ohio (+2 cents) and Indiana (fractions of a penny) are paying a bit more to refuel their vehicles over this same period, but prices in the region are positioned to head lower over the next week as wholesale prices have fallen.

The average price at the pump is down in every state and Washington, D.C. month-over-month. Every state but Delaware is registering a double-digit discount and drivers in 17 states are saving more than a quarter per gallon. States in the Midcontinent region are recording the largest savings over this period: Oklahoma (-46 cents), Minnesota (-43 cents), South Dakota (-43 cents) and Missouri (-38 cents).

Year-over-year comparisons reflect the most extreme discounts in the price at the pump, led by states located in the Southern and Gulf Coast Regions: Florida (-68 cents), South Carolina (-63 cents), Virginia (-61 cents) and Mississippi (-61 cents). With the exception of Hawaii (-6 cents), drivers in every state and Washington, D.C. are experiencing savings of a dime or more and average prices are down by a quarter or more per gallon in 44 states and Washington, D.C.

Top10 Monthly Savings-12-01-14

Sharply lower global oil prices have been the driving factor for lower retail gas prices. Prices dropped even lower last week when, despite the falling price of global oil, the Organization of Petroleum Exporting Countries (OPEC) elected to maintain its collective production ceiling when the group met last Thursday. There had been speculation that the group might take some action to cut collective production to raise prices. This leaves the balance between supply and demand to decide the global price of oil, and with supply outpacing demand the price for crude is expected to remain relatively low. Following the news, West Texas Intermediate (WTI) plummeted more than ten percent ($7.54) in Friday’s trading to settle at $66.15 per barrel. The ultimate market implications for OPEC’s inaction remain unclear, however many market watchers have indicated that they see it as a signal that the oil cartel is more focused on maintaining market share and hoping for prices to stabilize in the winter months as global demand increases.

Michael Green Contact Tile(WASHINGTON, November 24, 2014) The national average price for regular unleaded gasoline has fallen for 60 consecutive days, reaching today’s price of $2.81 per gallon. This is seven cents less than one week ago, one quarter less than one month ago and 46 cents less than one year ago. Today’s price is the least expensive since November 4, 2010 and motorists are on target to pay the lowest averages at the Thanksgiving holiday since 2009, when the national average price was $2.63 per gallon.

 Avg-Gas-Prices-2011-2014

Across the country motorists are enjoying low prices due to production exceeding demand and relatively few issues at local refineries. Consumers in South Carolina and Missouri are paying the nation’s lowest average price at the pump, $2.57 per gallon, and 38 states are posting averages below the $3.00 per gallon threshold. On the other end of the spectrum, states located on the West Coast and northeast continue to lead the nation registering the nation’s highest averages, led by Hawaii ($3.91), Alaska ($3.54), New York ($3.20) and Connecticut ($3.14).  For the third week in a row, the average price for retail gasoline is below $4.00 per gallon in every state and Washington, D.C.

The price at the pump is down in every state and Washington, D.C. in comparison to one week ago. Thirty-six states and Washington, D.C. are posting week-over-week savings of a nickel or more and drivers in seven of these states have seen prices fall by a dime or more over this same period. Production continues to outpace demand in the Midcontinent, contributing to additional savings at the pump for states in that region. The largest discounts are seen in Indiana, Michigan and Ohio, where the average price is down by 13 cents per gallon.

 10 Least Expensive Avg Gas Prices-11-24

Consumers in every state and Washington, D.C. are also paying less to refuel their vehicles both month-over-month and year-over-year.  Monthly averages are discounted in 49 states and Washington, D.C. by at least 15 cents and 19 states are posting savings of one quarter or more per gallon. Motorists in Minnesota (-39 cents), Oklahoma (-35 cents), California (-32 cents) and Indiana (-32 cents) are experiencing the biggest savings over this period.

The most dramatic savings are seen on a year-over-year basis. Retail prices are lower by at least a quarter per gallon in the majority of states (41). The largest drops in the price at the pump versus last year are seen in the Atlantic Coast States of Florida (-59 cents), South Carolina (-57 cents), Virginia (-57 cents) and North Carolina (-56 cents), however 12 additional states are just behind with their average prices discounted by fifty cents or more per gallon.

 Top10 Yearly Savings-11-24

The abundance in global supply has contributed to a number of global benchmarks trading at multi-year lows, and market watchers are anxiously awaiting the outcomes of two major events scheduled for later this week to see how they will impact prices. The Organization of Petroleum Exporting Countries (OPEC) is scheduled to meet this Thursday, and will respond to the growth in world oil supply by either cutting or sustaining its current production levels.  Additionally, Iran is scheduled to meet with world leaders to discuss the possible relaxation of sanctions that have been in place since late-2011. Prior to the sanctions, Iran was one of OPEC’s leading producers and the lifting of these restrictions could inject additional supply into the global oil market.  At the close of formal trading on Friday West Texas Intermediate (WTI) crude oil closed 60 cents higher at $76.43 per barrel. While oil prices did increase slightly to close out last week, WTI has now settled below $80 for three straight weeks – the longest streak since September 2010.

Michael Green Contact Tile(WASHINGTON, November 17, 2014) The national average price of gasoline has remained below $3.00 per gallon for 17 days, with more than three-quarters of U.S. gas stations now reporting prices below this benchmark. Today’s national average price for regular unleaded gasoline is $2.89 per gallon, which is the lowest mark since December 2, 2010. Today’s price represents a savings of four cents per gallon compared to one week ago, a savings of 24 cents compared to a month ago and 32 cents compared to one year ago.

 National Average Gas Price Comparison 2011 to 2014 November 17 2014

The price at the pump is closely tied to the wholesale price of crude oil, and falling global oil prices have been the primary contributing factor to the price at the pump declining for 53 consecutive days. This is the longest streak of declines since 2008. West Texas Intermediate (WTI) crude oil, the traditional U.S. benchmark, dropped to its lowest level in more than three years this past Thursday ($74.21 per barrel). Lower crude oil costs are the main reason why drivers are paying  an average of 81 cents per gallon less than the 2014 peak of $3.70 per gallon (April 28). The downward pressure on prices is expected to continue through the Thanksgiving holiday, meaning drivers are likely to be giving thanks for the cheapest seasonal prices since 2009 when the national average registered $2.63 on the holiday.

 AAA Top Ten Most Expensive Average Gas Prices November 17 2014

Across the country, state averages continue to tick downward with consumers in 48 states and Washington, D.C. experiencing week-over-week savings at the pump. Thirty-five states are reporting an average less than $3.00 per gallon and three states, including Montana, North Dakota and Pennsylvania, are just fractions of a cent from also falling below this benchmark. Drivers in South Carolina ($2.63), Mississippi ($2.66) and Tennessee ($2.66) are paying the nation’s lowest averages for retail gasoline. The nation’s three most expensive markets – Hawaii ($3.96), Alaska ($3.59) and New York ($3.24) – are among those reporting savings over this same period, and for the second consecutive week no state has an average that is above the $4.00 per gallon mark.

Month-over-month comparisons show that drivers in every state and Washington, D.C are paying less to refuel their vehicles. West Coast and Rocky Mountain states are registering the largest drops in prices at the pump, led by California (-37 cents), Oregon (-34 cents), Montana (-31 cents) and Arizona (-30 cents). Consumers in 20 states and Washington, D.C. are saving a quarter or more per gallon versus one month ago, and those in every state but Iowa are enjoying double-digit discounts at the pump. The monthly discount in Iowa falls just short of this threshold at 9.97 cents.

 AAA Top Ten Largest Yearly Savings in Gas Prices November 17 2014

The most dramatic discounts are evident when comparing year-over-year averages. Drivers in every state and Washington, D.C. are paying less, and those in 47 states and D.C. are saving a dime or more per gallon when they refuel their vehicles. Averages are down by a quarter or more in 33 states and Washington, D.C., and motorists in Delaware (-42 cents), South Carolina (-42 cents) and California (-42 cents) are saving the most per gallon over this period.

Global prices for crude oil continue to fall, touching lows not seen since 2010. Market analysts continue to speculate on what action the Organization of Petroleum Exporting Countries (OPEC) will take during the upcoming meeting, scheduled for Nov 27. Should the cartel opt to cut production, the price at the pump for motorists could return higher. If OPEC instead chooses to maintain market share by leaving production unchanged, global oil prices could slide even further.  At the close of Friday’s formal trading on the NYMEX, WTI settled $1.61 higher at $75.82 per barrel.

 

 

Michael Green(WASHINGTON, November 10, 2014) The national average price of gas has dropped for 46 days in a row (a cumulative decline of 42 cents), which is the longest consecutive decline since 2008. Today’s national average for regular unleaded gasoline is $2.93 per gallon, which is the lowest price since Dec. 4, 2010. Motorists are paying a nickel less than one week ago, 29 cents less than one month ago and 26 cents less than one year ago.

Avg Gas Prices 2011-2014

The price at the pump has dropped 77 cents from the 2014 peak of $3.70 (April 28), which represents an estimated savings of more than $250 million each day for American motorists. A decrease in retail gasoline prices is often likened to a tax cut because it can inject billions of dollars in non-gasoline spending into the economy. Absent any unanticipated market-moving events this winter, the retail price for gasoline is expected to remain relatively low. As gasoline stations continue to adjust to falling oil prices in the global market, consumers are likely to experience the lowest Thanksgiving prices since 2009.

The average price at the pump is below the $3.00 per gallon threshold in more than half (27) of the states with consumers in South Carolina ($2.67), Tennessee ($2.70) and Mississippi ($2.71) paying the nation’s lowest prices. Although Hawaii ($3.99) continues post the highest average for retail gasoline, the state average fell below $4.00 per gallon for the first time since Jan. 9, 2014 on Saturday. Hawaii is followed by Alaska ($3.64), New York ($3.29) and Connecticut ($3.23) as the nation’s most expensive markets.

10 Most Expensive Avg Gas Prices-11.10

Week-over-week the average price for gasoline is down in 47 states and Washington, D.C. Drivers in Oklahoma (-15 cents), Minnesota (-14 cents) and North Dakota (-12 cents) are experiencing the largest savings over this period with drivers in 29 states and Washington, D.C. saving a nickel or more per gallon. The only exceptions to this trend are in Michigan (+3 cents), Kentucky (+1 cent) and Indiana (fractions of a penny) where prices have increased over this same seven day period.

The average price for gasoline across the country reflects savings in both month-over-month and year-over year comparisons. Discounts are in the double-digits in every state and Washington, D.C. over the past 30 days, including 34 states and Washington, D.C. where prices are down by a quarter or more per gallon. The largest monthly savings at the pump are seen on the West Coast: Oregon (-47 cents), Washington (-44 cents) and California (-40 cents).

Top10 Monthly Savings-11-10

The year-over-year declines have been led by California (-40 cents), Maine (-39 cents), Delaware (-38 cents) and Alabama (-37 cents). The price at the pump is down by a dime or more in 43 states and D.C., and consumers in every state but Nebraska (-3 cents) are saving at least a nickel over this same period.

Fueling the welcome decline in gas prices has been the multi-month drop in crude oil costs with prices for West Texas Intermediate down to a multi-year low of $77.19 per barrel last Tuesday, which compares to a 2014-high of more than $107 per barrel on June 20. Adding momentum to falling prices last week was an unexpected move by Saudi Arabia, the world’s largest oil exporter, to lower the price per barrel for crude sold to the United States. Market watchers are now focused on the upcoming meeting of the Organization of the Petroleum Exporting Countries (OPEC) with analysts paying close attention to how the cartel will respond to falling global prices. At the close of Friday’s formal trading on the NYMEX, WTI had recovered slightly to settle at $78.65 per barrel.

Michael Green Contact Tile(WASHINGTON, November 3, 2014) After a streak of 1,409 consecutive days of a national average above $3 per gallon, the price for regular unleaded gasoline fell to $2.99 per gallon on Saturday, which marked the first time the AAA indicator had fallen below that mark since December 22, 2010. Today’s price is six cents less than one week ago,  33 cents less than one month ago, and 28 cents less than the price consumers paid one year ago. Today’s national average, $2.98, is the lowest price paid since December 14, 2010 ($2.979).

National pump prices usually drop during the autumn season due to decreasing demand and the cost savings associated with producing winter-blend gasoline. However global oil prices have declined more than anticipated, as supply has outpaced demand, contributing to even greater savings at the pump for drivers. Barring an unexpected market-moving development this winter, motorists can expect to pay retail prices that are relatively low, and could see the price continue to tick downward even a little further as gasoline stations adjust to falling oil prices in the global market. AAA predicts the national average could fall another 5-15 cents in the coming weeks, which could make for the cheapest Thanksgiving gas in half a decade.

Avg Gas Prices 2011-2014

Averages in nearly half (23 states) of the country are currently below the $3 per gallon threshold. The nation’s least expensive market for retail gasoline, South Carolina ($2.72), is registering an average unseen by motorists in the state since May 2010. Hawaii ($4.04) continues to lead the market registering the nation’s most expensive average, and remains the only state with an average price above $4 per gallon. Drivers in New York ($3.35), Connecticut ($3.30) and California ($3.30) have seen averages in their states fall by a nickel or more over the last seven days, but continue to pay the highest prices at the pump in the continental United States.

10 least Expensive Avg Gas Prices-11-03-14

Over the last seven days, the price has ticked downward in 47 states and Washington, D.C. Drivers in Indiana (-15 cents), Michigan (-13 cents), Oregon (-10 cents) and Montana (-10 cents) are saving the most in the nation; and the price at the pump is discounted by at least a nickel in a total of 33 states and Washington, D.C., during this period. Contrary to this trend, consumers are paying fractions of a penny more at the pump in North Dakota, South Dakota and Ohio.

Month-over-month the average price for retail gasoline reflects double-digit savings in every state and the District of Columbia. Over this same period, consumers in 39 states and Washington, D.C. are experiencing some substantial “sticker delight” with savings of a quarter or more per gallon led by: Oregon (-53 cents), Washington (-50 cents), Georgia (-45 cents) and Kentucky (-41 cents). Year-over-year comparisons reflect a similar picture with drivers in every state experiencing savings at the pump. The average price to refuel is discounted by a dime or more in 41 states and Washington, D.C., with consumers in Tennessee (-39 cents), Alabama   (-38 cents), California (-38 cents), South Carolina (-37 cents), and Georgia (-37 cents) saving the most per gallon over this same period.

Top10 Yearly Savings-11-03-14

Abundant global oil production — particularly the substantial increases to U.S. production — continues to outweigh any concerns of possible supply disruptions due to geopolitical instability. This assessment has been validated by the price of crude dropping by approximately 25 percent since June at the same time as violence in Iraq and tensions in Eastern Europe have continued to grab headlines. Market participants continue to speculate about how the Organization of Petroleum Exporting Countries (OPEC) will respond to falling prices, and whether the cartel will agree to cut or sustain production. Iran and Kuwait recently indicated that a reduction in production was unlikely. However the world’s largest exporter of petroleum, Saudi Arabia, has yet to publicly comment on the subject. West Texas Intermediate (WTI) closed out last week down 58 cents to settle $80.54 per barrel at the close of Friday’s formal trading on the NYMEX. At last look, with no market-moving news over the weekend, WTI was trading slightly higher this morning.

Podcasts

B-Roll

YouTube Videos

AAA Senior Driver Expos

NewsRoom Video Gallery

Media: Find and Download AAA Videos and B Roll.