Average gasoline costs nationwide are hovering around $3 but could soon dip below that, some industry experts say.
The national average was about $3.07 per gallon on Wednesday, down about 10 cents from a month ago and nearly 15 cents from a year ago. to AAA.
“Americans appear to be on the verge of seeing the national average fall below $3.00 per gallon and possibly stay there for the first time in years as prices have fallen across the vast majority of the country,” said Patrick De Haan, head of petroleum analysis at Texas-based GasBuddywhich tracks prices at more than 150,000 stations nationwide.
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A gas station attendant pumps diesel into a car at a gas station. Average gas costs nationwide are hovering around $3 and could soon dip below that. (Sean Gallup/Getty Images/Getty Images)
De Haan said that with more than 40 states experiencing falling gas prices and oil prices dipping below $60 a barrel, the downward trend could continue in the coming weeks.
“The good news may not end if – and when – the national average hits the magic $2.99 mark,” he said.
He added that with wages rising and fuel prices falling, Americans are spending a smaller share of their income on gas than they have in years.
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The photo shows a woman taking money from her wallet. De Haan added that with rising wages and falling fuel costs, Americans are now spending a smaller share of their income on gas than they have in years. (iStock)
States with the lowest gas prices on Wednesday included Texas at $2.65, Wisconsin at $2.67 and Arkansas at $2.64, according to AAA.
Meanwhile, places with the highest gas prices on Wednesday included California at $4.65, Hawaii at $4.48, Washington at $4.46 and Oregon at $4.07.
Two reasons behind the pocketbook relief are weaker demand after the summer travel season and refiners switching to a cheaper winter fuel blend, according to NBC’s business correspondent Brian Cheung told TODAY on Wednesday.
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Cars are seen driving on the highway. The Energy Information Administration (EIA) recently predicted that less than 2% of people’s personal disposable income will be spent on gasoline by 2025. (Jonas Walzberg/Photo Alliance via Getty Images/Getty Images)
“The reason for this is that refineries are switching to what they call the winter blend, which is a little cheaper to produce,” Cheung told TODAY. “And it’s just that there are fewer drivers on the road, because unfortunately we have the summer behind us. For that reason, demand has dropped and gasoline prices are also going up.”
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The Energy Information Administration (EIA) recently predicted that less than 2% of people’s personal disposable income will be spent on gasoline by 2025, down from an average of 2.4% over the past decade and the lowest share since 2005, excluding 2020.
