Saturday, October 3, 2015

Gas Prices Average Less Than $3 Nationwide for First Time Since 2009

The national average for a regular gas Thursday was unchanged from a week ago at $2.29 a gallon as seasonal maintenance at refineries caused what is expected to be a temporary detour from declining pump prices. The AAA Daily Fuel Gauge Report showed that prices continued to fall in most Western states but were heading higher in areas where refineries were undergoing maintenance, reducing gasoline supplies. Pump prices rose by a nickel or more in Illinois, Indiana and Michigan, for example, and 14 cents in Ohio during the past week.

Related: More Fuel-Efficiency News

"Falling averages are often the trend at this time of year due to a decline in driving and the switchover to winter-blend gasoline. Unlike previous years, refinery maintenance season this autumn is expected to be heavier than usual due to refineries operating at higher than normal rates for longer periods over the summer months," AAA said in a release. "As the refinery maintenance season continues to ramp up, gas price declines could slow and temporarily change direction.

"However, the market's current oversupply is expected to keep prices relatively low, and barring any unexpected price spikes, consumers should continue to experience significant yearly savings at the pump approaching the end of the year."

Any supply issues caused by refinery maintenance are likely to be regional and temporary, the Energy Information Administration stated Wednesday in its weekly report, noting that inventories of crude oil and gasoline both rose substantially the past week.

The average price for regular gas fell 6 cents a gallon in California the past week and 13 cents in Alaska to put both states at $2.96. AAA said this is the first time since June 2009, when the country was mired in a deep recession, that all states average less than $3 for regular. A year ago, motorists were paying $3.69 a gallon in California and $3.91 in Alaska. In Hawaii, regular now averages $2.89, versus $4.20 at this time last year.

Motorists across the country are paying far less for gas than they were a year ago. At $2.29, the average price of regular is $1.05 less than on Oct. 1, 2014, and premium gas is 93 cents cheaper at $2.79. Diesel fuel is $1.25 less than a year ago at $2.50. Average prices for regular are less than $2.25 in 20 states, and four states are under $2: Alabama, $1.99; Mississippi, $1.98; New Jersey, $1.97; and South Carolina, $1.96. Tennessee was at $2.

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