Gas prices have fallen for 31 straight days, and analysts predict the downward spiral will continue through the fall. The AAA Daily Fuel Gauge Report said Thursday that the national average for regular gas was $2.30 a gallon, a decline of 7 cents from a week ago and 37 cents from a month ago.
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Regular gas averaged less than $2 a gallon in three states — South Carolina, Alabama and Mississippi — and GasBuddy.com reported that about one in five stations across the country were selling regular for less than $2. GasBuddy said to expect more price reductions as refineries are switching to lower-cost winter blends of gasoline in major urban areas from the more-expensive summer blends mandated for pollution control.
"That'll end up saving motorists 10-25 cents a gallon with the biggest savings in big cities that require the most stringent blends of summer gasoline," GasBuddy said in a release.
AAA said prices should continue creeping lower because the market has a surplus of oil, but noted that the International Energy Agency predicts global oil production will decline in the fall due to low prices and an oversupply of crude. Longer term, the IEA said global oil demand should pick up in 2016; coupled with lower production, that could lead to higher prices at the pump down the road. In the meantime, a glut of oil has driven pump prices to their lowest level since February, which also was the last time three states averaged less than $2 a gallon for regular. Compared with a year ago, the average price for regular is $1.07 lower and, at $2.52, diesel fuel is $1.25 lower.
"U.S. drivers continue to benefit from an oversupplied market and consumers could experience even lower prices at the pump if the price of crude oil remains relatively low and refineries are able to conduct planned seasonal maintenance without issue," AAA said in a release.
South Carolina had the nation's cheapest gas with a statewide average of $1.92, and Alabama and Mississippi were close behind, both at $1.96, according to AAA. (Prices fluctuate throughout the day and could change.) Alaska had the most expensive gas at $3.19 for regular, followed by California, $3.10, and Nevada, $3.03, the only states averaging more than $3.
The average price fell 6 cents in Hawaii the past week to $2.95, putting the Aloha State below $3 for the first time in at least six years; a year ago, the average price for regular in Hawaii was $4.25. Motorists in several states are saving more than $1 per gallon compared with a year ago, including in Indiana and Kentucky ($1.18 less) and Connecticut ($1.21 less).
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