As Refineries Resume Output, Gas Prices Resume Slide

Gas prices headed lower again this week in most parts of the U.S. as more refineries resumed normal production following seasonal maintenance that had squeezed supplies. The national average for regular gas had held steady for two weeks but last week jumped by double digits in several Midwestern and Great Plains states, where several refineries curtailed gasoline production to conduct routine or emergency maintenance.

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On Monday, regular was higher by 15 cents or more per gallon than it was a week earlier in states such as Iowa, Minnesota, Nebraska, North Dakota and Oklahoma. By Thursday, though, prices were easing in those states and others as gasoline production increased at regional refineries and supplies at pumps began to rise.

GasBuddy.com and the AAA Daily Fuel Gauge Report on Thursday listed the national average for regular gas at $2.29 a gallon, down 2 cents from a week ago. GasBuddy said prices were trending downward in all but 11 states. As refinery maintenance winds down, AAA predicted that prices should continue to decline through the fall months, barring any major events affecting the supply or price of oil.

"Ample domestic supplies are expected to temper any regional price spikes, preventing the national average from moving dramatically higher," AAA said in a statement. "Before the end of the year, drivers could still see the national average fall below $2 per gallon for the first time since 2009, assuming crude oil prices do not increase and there are not unexpected disruptions to supply."

GasBuddy said South Carolina, at $1.95 a gallon, and New Jersey, at $1.98, were the only states where the average for regular gas is currently less than $2. However, Alabama, Louisiana, Mississippi and Tennessee were within a penny or so of going below $2. California and Hawaii were tied for having the most expensive gas, at $2.90 a gallon for regular, followed by Nevada, at $2.85. Prices were falling or stable in those states, and motorists in Alaska, Oregon and Washington continued to see steady declines at the pump. (Prices fluctuate throughout the day and could change.)

Over the past month, the average price for regular gas fell 28 cents in Washington to $2.50; 29 cents in Oregon to $2.37; and 56 cents in Alaska to $2.66. The statewide average in Alaska dropped 13 cents in just the past week. Even with recent price increases that affected several states, the national average for regular gas is 89 cents cheaper than a year ago, according to AAA. Premium gas, at a national average of $2.78 a gallon, is 78 cents cheaper than a year ago, while diesel fuel, at $2.53, costs $1.14 less.