If it seems like you're shelling out less for gas now than a week or two ago, it's probably not just your imagination. The national average price for a gallon of regular unleaded gas has fallen 15 days in a row, according to the AAA Daily Fuel Gauge Report — the longest streak of daily declines since January. The national average of $2.67 a gallon for regular gas on Thursday was 11 cents lower than on July 15.
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The main reason for the decline: The global supply of oil continues to outpace demand, keeping downward pressure on the price of oil. U.S. oil was trading at less than $50 a barrel Thursday compared with more than $93 a year ago, when the national average for regular was $3.51 a gallon.
"The price of oil generally accounts for more than half the cost of retail gasoline at the pump, so lower crude oil prices typically lead to lower pump prices for motorists, barring other influencing factors like refinery issues, distribution challenges or changes in demand," AAA said in a statement.
Moreover, AAA noted: "The global oil market touched multi-month lows to open the week's trading session in reaction to signals that the market is likely to remain oversupplied in the near term, which is expected to keep downward pressure on prices."
Refinery and supply issues recently caused price spikes in California, the Great Lakes area and elsewhere, but as those problems are resolved, pump prices have headed downward — rapidly in some states, particularly in the central part of the country.
Ohio's average price for regular gas plunged 17 cents a gallon the past week to $2.38 and has fallen 33 cents during the past two weeks. Average prices fell by at least 11 cents the past week in Illinois, Indiana, Kentucky, Michigan and Minnesota.
Prices in Ohio and Indiana, where the statewide average also was $2.38 a gallon for regular gas, were within a dime of the states with the cheapest gas — Alabama and South Carolina, both at $2.30. Eleven other states averaged less than $2.50 a gallon, and seven averaged more than $3. Prices cited were listed on the AAA Daily Fuel Gauge Report early Thursday.
California's pump prices have started to fall after motorists there were socked with a 74-cent spike earlier this month caused by an oil shortage and reduced production at key refineries. California's average price fell 6 cents the past week to $3.80, still the highest in the nation. Prices also eased in other Western states hit by the price spike.
Diesel fuel prices have fallen slowly but steadily, dipping 4 cents the past week to a national average of $2.75 a gallon. The average price of diesel a year ago was $3.84.
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