Gasoline prices, which had hit record highs in recent months are now falling sharply inching closer to an average of $4 a gallon across the county. On Monday, August saw average gas prices reach $4.059 down from $4.212 a week ago, according to the American Automobile Association (AAA).
Gas prices have been falling steadily from the record high of $5.03 per gallon in June bringing some relief for drivers. Despite the recent decline in gas prices, gas at the pump is some 87 cents higher from last year, this time last year a gallon of gas was $3.188.
- READ MORE: Pay Less With These Gas Saving Apps
Gas Prices Drop
The District of Columbia, Colorado, Arizona, and Illinois saw the highest decrease in gas prices with an average of 20 cents drop in gas prices. Gas prices in The District of Columbia fell from $4.533 to $4.254 within a week. Similarly, Colorado saw prices at the pump reach $4.171 from a high of 4.400 last week.
Despite the respite in gas prices some states still continue to feel the pinch at the pump.
Drivers in California on average pay $5.446 a gallon while Alaskans pay on average $4.98 for a gallon of gas. This is despite gas prices falling by over ten cents since last week in both states. The states of Hawaii, Vermont, and Pennsylvania showed marginal decreases when compared to figures from across the country.
Highest Gas Prices
At the other end of the spectrum, several other states have seen their gas prices below the $4 and inch close to last year’s prices, the majority being in the south. For example, average gas prices in Texas are at $3.572 while in South Carolina it is $3.604 a gallon down from $ 3.747 a week ago. Other states with average gas prices below $3.70 include Georgia, Arkansas, Mississippi, Tennessee, and Alabama.
Lowest Gas Prices
Are gas prices going to go down again?
Recent weeks have shown that gas prices are on a trajectory to keep falling for at least the next few weeks. The decline comes as global fuel demand has been declining due to high prices and a strong U.S. dollar making oil more expensive elsewhere. On the consumer side, high gas prices had prompted consumers to buy less gas allowing for a decrease in demand for gas.
Last week, demand dropped from 9.25 million barrels a day to 8.54 million barrels a day. Domestic gasoline stocks also increased slightly by 200,000 billion barrels to 225.3 million billion barrels. Projections indicate that if demand for gas remains low and stocks continue to rise alongside falling crude prices, drivers could see gas prices reaching last year’s prices.
Gas Price Trends
|Week Ago Avg.||4.212||4.651||4.952||5.279||3.468|
|Month Ago Avg.||4.721||5.16||5.455||5.675||4.034|
|Year Ago Avg.||3.188||3.54||3.815||3.297||2.684|
When will gas prices go up?
All indications point to gas prices stabilizing and going down provided that there are no interruptions in the supply of gas. Currently, the nation is seeing gasoline inventories growing to allow for some cushion from rising gas prices. Incidents such as supply chain breakdowns from refinery breakdowns or hurricanes could cause another rise in gas prices.
State Gas Prices August 8, 2022
|District of Columbia||4.254||4.782||5.135||5.39|
Get the latest headlines from Small Business Trends. Follow us on Google News.
The high cost led to lower demand and with US schools beginning again (and the end of summer traveling) we should see more decreases in demand. That should lead to continuing lower prices since supply seems to be steady.