See which states saw the biggest declines ahead of the holidays
Holiday inflation is hitting consumers hard this season
Inflation remained nearly stable in November as lower gas prices and durable goods largely offset still-strong increases in services.
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The national average price of a gallon of gasoline in the U.S. has fallen and was just $3,137 as of Tuesday, according to AAA.
The amount is 9 cents lower than last week's average, making this week's prices the lowest they have been all year. The decline comes as oil costs struggle to stay above $70 a barrel, according to a AAA report released last week. Around the same time, OPEC+ announced voluntary production cuts of about 2 million barrels per day.
“Historically, crude oil tends to fall nearly 30% from late September through the start of winter, with gasoline prices lagging behind,” AAA spokesman Andrew Gross said in the report released Dec. 7. “More than half of all U.S. gas stations have gasoline prices below $3 per gallon. By the end of the year, the national average could also fall to this low.”
Experts expect the downward trend in the U.S. to continue due to an expected 7% drop in gas consumption this winter as the warmer winter caused by El Niño reduces demand for heat.
Prices are constantly falling worldwide due to higher production
Gas prices have also fallen worldwide as gas production increases despite lower demand.
OPEC+ has announced it will cut oil supply in the first quarter of 2024 to support oil prices. However, portfolio investors remain skeptical about whether OPEC+ countries will make further cuts to boost prices,” according to Portal.
Energy research firm FGE predicts OPEC+ will tighten its grip on the market next year and ramp up production in the second half of 2024, Insider reported.
Which states have the lowest gas prices?
According to AAA, these states have the cheapest average gas prices as of Tuesday, December 12:
- Texas ($2.60)
- Mississippi ($2.70)
- Oklahoma ($2.68)
- Missouri ($2.70)
- Louisiana ($2.71)
- Arkansas ($2.72)
- Kansas ($2.79)
- Alabama ($2.79)
- Tennessee ($2.79)
- Ohio ($2.80)
Which states have the highest gas prices?
According to AAA, the states with the highest average gas prices for a gallon of regular gas are (as of Tuesday, December 12):
- California ($4.70)
- Hawaii ($4.70)
- Washington ($4,260)
- Nevada ($4,020)
- Oregon ($3.99)
- Alaska ($3.81)
- Pennsylvania ($3.49)
- New York ($3.47)
- Idaho ($3.43)
- Vermont ($3.41)
Which states saw the largest declines?
According to AAA, the states where gas prices fell the most on Thursday, December 7th were:
- Colorado (−12 cents)
- Utah (−11 cents)
- Idaho (−11 cents)
- California (−10 cents)
- Florida (−10 cents)
- Indiana (−10 cents)
- New Mexico (−9 cents)
- Arizona (−8 cents)
- Kentucky (−8 cents)
- Nevada (−8 cents)
Contributor: Juan Carlos Castillo, USA TODAY Network