Gas Prices Drop Below $3 in 11 States
Gasoline prices are on a downward trend, with 11 states now averaging below $3 per gallon. The steady decline comes amid falling seasonal demand and use of less-expensive winter-grade gas.
According to AAA data, the national average for gasoline sits at $3.36, compared to $3.78 one year ago.
Drivers in the following states are looking at average pump prices just under $3 per gallon.
Alabama: $2.95
Arkansas: $2.95
Georgia: $2.85
Kentucky: $2.99
Louisiana: $2.92
Mississippi: $2.84
Missouri: $2.99
Oklahoma: $2.91
South Carolina: $2.93
Tennessee: $2.96
Texas: $2.80
Even costly California has seen prices decline to $5.07 per gallon, down $0.60 from one month ago.
“Gasoline demand has struggled in recent weeks, falling not only due to the seasonal nature as Americans drive less as the weather gets colder, but it appears there may be some economic headwinds entering the equation as well,” Patrick De Haan, head of petroleum analysis at GasBuddy, said on Monday.
Gasoline consumption is expected to go down next year in the US as Americans continue to work remotely, fuel efficiency improves, and inflation stays high, according to the Energy Information Administration.
“Relatively high gasoline prices and persistently high inflation may be affecting consumer budgets and reducing discretionary driving,” reads the agency’s latest energy outlook report.
Gasoline prices have been flat or falling since mid-September despite volatility in the oil markets during that period. Crude recently posted a third week of losses for the first time since May.
On Monday, West Texas Intermediate (CL=F) edged higher, trading just above $77 per barrel. Brent (BZ=F) crude gained fractionally, hovering above $82 per barrel.
This article was contributed by Ines Ferre, a senior business reporter for Yahoo Finance.