Gasoline prices are trending downward, with the average currently below $3 per gallon in 11 states. The steady decline is due to falling seasonal demand and the use of cheaper winter gas.
Drivers in the following states expect average pump prices of just under $3 per gallon.
Alabama: $2.95
Arkansas: $2.95
Georgia: $2.85
Kentucky: $2.99
Louisiana: $2.92
Mississippi: $2.84
Missouri: $2.99
Oklahoma: $2.91
South Carolina: $2.93
Tennessee: $2.96
Texas: $2.80
According to AAA data, the national average for gasoline is $3.36, compared to $3.78 a year ago.
Current gas price at a BP gas station in Emporia, Kansas today. This price dropped by almost 10% in just five days at the same gas station. (Mark Reinstein/MediaPunch/IPX) (Mark Reinstein/MediaPunch/IPx)
Even in expensive California, prices have fallen to $5.07 a gallon, down $0.60 from a month ago.
“Gasoline demand has struggled in recent weeks and has not only fallen due to seasonality as Americans drive less in colder weather, but it also appears there could be economic headwinds,” said Patrick De Haan, head of petroleum analysis at GasBuddy said Monday.
According to the Energy Information Administration, U.S. gasoline consumption is expected to decline next year as Americans continue to work remotely, fuel efficiency increases and inflation remains high.
“Relatively high gasoline prices and persistently high inflation could impact consumers’ budgets and limit discretionary driving,” the agency’s latest energy outlook report said.
Gasoline prices have been flat or falling since mid-September, despite volatility in oil markets during that period. Crude oil recently posted a third week of losses for the first time since May.
On Monday, West Texas Intermediate (CL=F) rose slightly, trading just above $77 a barrel. Brent crude oil (BZ=F) rose slightly and settled above USD 82 per barrel.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre.
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