Gas prices to drop this fall, here’s how much
Drivers could be in for a little reprieve this fall, as experts forecast gas prices could drop meaningfully from current levels.
According
to AAA, the national average will decrease to $2.70 in the coming
months, which is 14 cents less than the current average price and more
than 25 cents less than the recorded high of the year – $2.97, set in
May.
“Cheaper-to-produce gasoline and
relatively stable crude oil prices in August, combined with an
anticipated drop in consumer gasoline demand post-Labor Day, means
consumers will see savings when they fill-up at the pump this fall,” AAA
spokesperson Jeanette Casselano said in a statement.
The average price of gasoline across the nation was about $2.84, as of Wednesday.
As
the summer months come to an end, prices tend to fall with cyclical
trends, including the switchover to the cheaper-to-produce winter-blend
gasoline in September and a reduction in road trips and vacations.
However,
AAA’s upbeat outlook is sensitive to a number of outside influences,
including oil prices, geopolitical tensions and “the mere threat of a
hurricane,” Casselano added. Further, OPEC activity and the continued
collapse of Venezuela’s economy could also affect prices.
The
overall trend in 2018 has been a year-over-year increase in gasoline
prices, where AAA notes the national average has been about 41 cents
higher this year when compared to 2017. In some states, including
California and Hawaii, average prices have been more than 50 cents
higher when compared to last year. The prices that have seen the
smallest increase include Nebraska (35 cents), Iowa and Louisiana (36
cents), and Missouri and South Dakota (37 cents).
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