Gas prices are coming off of a 33-day slide and are at their lowest mark for this date since 2004.
Today’s national average price for regular unleaded gasoline is $2.21 per gallon, which is three cents per gallon less than a week ago, 14 cents less than a month ago and 52 cents less than one year ago. Pump prices in the Mid-Atlantic region have also seen declines in the past week, down as much as six cents in some areas.
Prices for some drivers are even lower with some 25,000 gas stations (approximately a quarter of stations) nationwide now selling gasoline for less than $2.00.
“As summertime temperatures heat up, gas prices continue to drop,” said Tammy Arnette, Public and Government Affairs Specialist for AAA Mid-Atlantic. “Those hitting the roads for day trips and summer vacations are being met with lower prices at the pump, with motorists in some areas of the Mid-Atlantic region paying under $2 a gallon.”
While retail gas prices may continue to slide through the month of July, there are a number of factors that could cause prices to rise again. This includes an increase in the global price of crude oil due to disruption in supply, stronger than expected economic indicators or geopolitical tensions overseas; as well as domestic factors like refinery issues, production cuts due to lower prices, stronger than anticipated demand or hurricanes that impact distribution and production.
According to the Energy Information Administration’s Short-Term Energy Outlook (STEO), U.S. regular gasoline retail prices this summer are forecast to average $2.25/gallon(gal), 39 cents/gal lower than last summer, measured as April through September. U.S. regular gasoline retail prices are forecast to average $2.12/gal in 2016 and $2.28/gal in 2017. Brent crude oil prices are forecast to average $44/b in 2016 and $52/b in 2017. West Texas Intermediate (WTI) crude oil prices are forecast to be the same as Brent in 2016 and in 2017.
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